Inflation Targeting and the Stationarity of Inflation: New Results from an ESTAR Unit Root Test

Andros Gregoriou (a.gregoriou@brighton.ac.uk) and Alexandros Kontonikas (ak16270@essex.ac.uk)

Working Papers from Business School - Economics, University of Glasgow

Abstract: In this paper we examine the time series properties of inflation in seven countries that have adopted inflation targeting. Unlike previous studies we utilize a non-linear mean reverting adjustment mechanism for inflation and we discover that although deviations of inflation from the target can exhibit a region of non-stationary behavior, overall they are stationary indicating successful targeting implementation.

JEL-codes: C32 E31 (search for similar items in EconPapers)
Date: 2005-10
New Economics Papers: this item is included in nep-ets, nep-mac and nep-mon
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: INFLATION TARGETING AND THE STATIONARITY OF INFLATION: NEW RESULTS FROM AN ESTAR UNIT ROOT TEST (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2005_10

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