Inflation targeting and inflation convergence: International evidence

Description

Yes / We examine whether the inflation rates of the countries that pursueinflation targeting policies have converged as opposed to the expe-rience of the OECD non-inflation targeters. Using a methodologyintroduced by Pesaran (2007a), we examine the stationarity prop-erties of the inflation differentials. This approach has the advantageof avoiding setting arbitrarily a specific country as the benchmarkeconomy. Our results indicate that the inflation rates converge irre-spective of the monetary policy framework.

Links & Downloads

1. Arestis P, Chortareas G, Magkonis G, and Moschos D (2014) Inflation targeting and inflation convergence: International evidence. Journal of International Financial Markets, Institutions and Money. 31: 285-295.
2. http://hdl.handle.net/10454/7169
3. https://doi.org/10.1016/j.intfin.2014.04.002

Tags

Inflation targets

Inflation targeting

Inflation convergence

Pair-wise approach

Unit roots

Additional Fields

Identifer	oai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/7169
Date	04 1900
Creators	Arestis, P., Chortareas, G., Magkonis, Georgios, Moschos, D.
Source Sets	Bradford Scholars
Language	English
Detected Language	English
Type	Article, Accepted manuscript
Rights	© 2014 Elsevier. Reproduced in accordance with the publisher's selfarchiving policy. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/