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Do institutional structures really matter for in‡ation targeting in emerging market economies?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Hove, Seedwell |
| Copyright Year | 2010 |
| Abstract | Most emerging market economies which have implemented in‡ation targeting since the 1990s have continued to experience large, frequent and sometimes persistent in‡ation target misses. On the other hand most of these countries had reformed and improved their institutional structures when implementing in‡ation targeting. This questions the signi…cance of institutional structures for the success of in‡ation targeting. This paper studies the role of central bank independence, …scal discipline and …nancial sector development for the achievement of in‡ation targets in emerging market economies. It analyses the extent to which in‡ation deviations from the target bands can be attributed to institutional dynamics using the panel ordered logit model. The empirical results indicate that improvement in central bank independence, …scal discipline and …nancial systems reduces the probability of in‡ation target misses and therefore contributes to the success and credibility of monetary policy. These incanations are relevant for policy especially to other countries intending to adopt in‡ation targeting and even those currently using the in‡ation targeting regime to perfect their practices. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.csae.ox.ac.uk/conferences/2010-EdiA/papers/457-Hove.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
