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Bucharest University of Economic Studies, Romania

Author

Listed:
  • Can Tansel TUGCU

    (Akdeniz University, Faculty of Economics and Administrative Sciences, Antalya, Turkey)

  • Serdar OZTURK

    (Nevşehir Hacı Bektaş Veli University, Faculty of Economics and Administrative Sciences Nevşehir, Turkey)

Abstract

By employing Propensity Score Matching analysis, this study aims first to show how inflation targeting affects macroeconomic indicators in middle and high-income countries, and second highlights whether the global financial crisis has created a change in the way that inflation targeting impacts on them. Results prove that adopting inflation targeting increases the real GDP and budget deficit, and decreases the current account deficit. However, its effect on inflation is puzzling. The high-income inflation targeters should be careful about implementing the strategy and inflation targeting should be accompanied by the fiscal policy either in middle or in high-income countries.

Suggested Citation

  • Can Tansel TUGCU & Serdar OZTURK, 2015. "Bucharest University of Economic Studies, Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(605), W), pages 105-112, Winter.
    • Handle: RePEc:agr:journl:v:xxii:y:2015:i:4(605):p:105-112
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    References listed on IDEAS

    as
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