Do monetary, fiscal and financial institutions really matter for inflation targeting in emerging market economies?

Content Provider	Semantic Scholar
Author	Hove, Seedwell Tchana, Fulbert Tchana Mama, Albert Touna
Copyright Year	2017
Abstract	Most emerging market economies (EMEs) which have implemented inflation targeting have continued to miss inflation targets, even for countries with good institutions. This paper studies the importance of institutional quality such as central bank independence, fiscal discipline and financial sector development for the achievement of inflation targets in EMEs using a panel ordered logit model. It finds that the improvement in institutional quality reduces the probability of inflation target misses and that monetary policy is more effective in countries with good institutions. However, macroeconomic variables such as exchange rate gap, output gap and trade openness also explain inflation target outcomes.
Starting Page	128
Ending Page	149
Page Count	22
File Format	PDF HTM / HTML
DOI	10.1016/j.ribaf.2016.07.025
Alternate Webpage(s)	https://econrsa.org/system/files/publications/working_papers/wp247.pdf
Alternate Webpage(s)	https://doi.org/10.1016/j.ribaf.2016.07.025
Volume Number	39
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article