A Decade of Inflation Targeting in the World

2007 ◽  
Keyword(s):  
Inflation Targeting ◽  
The World

scholarly journals HAS INFLATION TARGETING BEEN SUCCESSFUL? EVIDENCE FROM UNIT ROOT TESTS

2019 ◽  
Vol 78 (308) ◽  
pp. 120
Author(s):  
Mesut Turkay ◽  
Burak Sencer Atasoy
Keyword(s):  
Time Series ◽  
Unit Root ◽  
Inflation Targeting ◽  
Inflation Rate ◽  
Unit Root Tests ◽  
Policy Framework ◽  
Panel Unit Root Tests ◽  
Panel Unit Root ◽  
The World ◽  
Monetary Policy Framework

<p class="run-in" align="center"><strong>ABSTRACT</strong></p><p>The popularity of inflation targeting has risen in the last decade and the number of countries that adopted inflation targeting as their monetary policy framework surpassed 40 by the end of 2016. This study analyzes whether inflation targeting around the world has been successful in terms of achieving the announced target and keeping inflation rate around it. We argue that a successful inflation targeting necessitates the deviation of inflation from the target be stationary. We employ both time series and panel unit root tests in order to analyze the stationarity properties of deviation of inflation from the target. Results of unit root tests provide evidence in favor of the success of inflation targeting framework around the world.</p><p align="center"><strong> </strong></p><p align="center"><strong>¿HAN SIDO EXITOSAS LAS METAS DE INFLACIÓN? RESULTADOS DE LAS PRUEBAS DE RAÍZ UNITARIA</strong></p><p class="run-in" align="center"><strong>RESUMEN</strong></p>La popularidad de las metas de inflación ha aumentado en la última década y el número de países que adoptaron metas de inflación como su marco de política monetaria sobrepasó los 40 a finales del 2016. Este estudio analiza si las metas de inflación alrededor del mundo han tenido éxito en términos de alcanzar el objetivo anunciado y mantener la tasa de inflación alrededor de su meta. Argumentamos que una meta exitosa de inflación requiere que la desviación de la inflación respecto a la meta sea estacionaria. Empleamos tanto series de tiempo como pruebas de raíz unitaria en panel con el fin de analizar las propiedades estacionarias de la desviación de la inflación en relación con el objetivo. Los resultados de las pruebas de raíz unitaria proporcionan evidencia a favor del éxito del marco de metas de inflación en todo el mundo.

Adapting to Expectations

2013 ◽  
Author(s):  
Brigitte Granville
Keyword(s):  
Public Debt ◽  
World Economy ◽  
Inflation Targeting ◽  
Academic Research ◽  
Balance Sheet ◽  
Inflation Risk ◽  
The Public ◽  
The World ◽  
Future Value ◽  
Value Of Money

This chapter considers the possible application of academic research to address the dire predicament of balance sheet recession and chronic stagnation characterizing large parts of the world economy since 2007. Contemporary policymakers have striven to stimulate demand despite huge debt overhangs and without undermining confidence in the future value of money or sustainability of the public finances and debt. However, as the analysis in the book has shown, excess public debt is fraught with future inflation risk. It highlights two characteristics underlying the best thinking about inflation: adaptation and remembering. It then addresses the question of how inflation targeting might be usefully applied to the post-2007 problems of recession and stagnation against a background of excessive indebtedness.

Switching to Floating Exchange Rate in Russia under the Strategy of Price Stability

2015 ◽  
Vol 2015 (4) ◽  
pp. 11-29
Author(s):  
Sergey Dubinin ◽  
Nina Miklashevskaya
Keyword(s):  
Exchange Rate ◽  
Main Part ◽  
Inflation Targeting ◽  
World Market ◽  
Emerging Countries ◽  
Exchange Rate Policy ◽  
Policy Issues ◽  
The World ◽  
Floating Exchange Rate ◽  
Rate Policy

The article focuses on the implementation of the exchange rate policy of the Bank of Russia aimed to switch from the managed arrangement to floating under inflation targeting. It provides a theoretical framework of such policy with special regard to emerging countries. The main part of the article deals with the policy issues, which Russia has been facing within the western sanctions and oil price falling at the world market. It contains the analysis of risks, which countries implementing the switching to floating may be exposed to and which should be taken into account by government authorities. Special attention is paid to the measures of economic policy to minimize the risks. It is concluded that the switching to floating may be appropriate only in case of availability of a set of required conditions.

Inflation Targeting Around the World

2008 ◽  
Vol 44 (6) ◽  
pp. 17-37 ◽  
Author(s):  
Pierre L. Siklos
Keyword(s):  
Inflation Targeting ◽  
The World

Inflation targeting in the world economy and in Russia

2019 ◽  
pp. 5-29 ◽  
Author(s):  
Boris A. Zamaraev ◽  
Anna M. Kiyutsevskaya
Keyword(s):  
Monetary Policy ◽  
Growth Rates ◽  
Financial Stability ◽  
World Economy ◽  
Inflation Targeting ◽  
Currency Crisis ◽  
Policy Regimes ◽  
Russian Economy ◽  
Consumer Prices ◽  
The World

The authors, analyzing features of realization of monetary policy under inflation targeting, show that its application and evolution are based on the objective reasons related to a decrease of consumer prices growth rates all over the world and an increase of the integration of the world economy. It led to the ineffectiveness of other monetary policy regimes in open economies. It is true also for the Russian economy that has passed the way from financial mechanisms of centralized economy to inflation targeting. Its approaches and instruments have been adjusted in accordance with Russian realities. The authors show that application of inflation targeting regime in Russia along with other measures of macroeconomic policy have become one of the elements of the system of maintaining financial stability after the 2014 currency crisis.

INFLATION TARGETING, PATTERN OF TRADE, AND ECONOMIC DYNAMICS

2018 ◽  
Vol 23 (07) ◽  
pp. 2748-2786
Author(s):  
Juin-jen Chang ◽  
Wen-ya Chang ◽  
Hsueh-fang Tsai ◽  
Ping Wang
Keyword(s):  
Capital Accumulation ◽  
Inflation Targeting ◽  
Bilateral Trade ◽  
Inflation Target ◽  
Temporary Change ◽  
Long Run ◽  
The World ◽  
Short Run ◽  
World Distribution ◽  
Domestic Inflation

This paper develops an analytically tractable, two-country, two-traded-good dynamic general-equilibrium model of money to examine the long-run and short-run effects of a temporary change in the domestic inflation target on the trade pattern, the terms of trade, the foreign exchange rate, and the capital accumulation of each country and of the world economy. We find that such a temporary monetary innovation can generate permanent effects on the world distribution of capital and the pattern of trade, resulting in nonneutrality in an otherwise money-neutral cash-in-advance setting. This change also leads to very rich transitional dynamics that we fully characterize analytically. In particular, endogenous responses in transition can be monotone or nonmonotone and can exhibit over-shooting. Our analytic findings and quantitative results help explain some noticeable changes in the capital accumulation, output, and bilateral trade of several countries adopting inflation targeting. Since the permanent effects of a temporary change in the domestic inflation target on the pattern of international trade and the performance of the macroeconomy are driven by a new channel through the world distribution of capital, we add new insights to the literature.

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