IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v7y2017i11p1028-1038id1615.html
   My bibliography  Save this article

The Relationship Between Exchange Rate and Inflation Targeting in Emerging Countries

Author

Listed:
  • Beldi Lamia
  • Mouldi Djelassi

Abstract

This paper investigates the relationship between exchange rate and inflation targeting regime in six emerging economies which have adopted inflation targeting (IT) regime during the period of 1993M1-2013M7. In this study, we seek to examine how the adoption of inflation targeting influenced exchange rate pass-through (ERPT) and volatility. The empirical evidences suggest that ERPT has declined after IT adoption for both price indexes (consumer and producer prices) for most economies analyzed. Furthermore, our results show that IT regime can reduce exchange rate volatility and inflation volatility in all countries. Thus, the implementation of inflation targeting regime contributes to price stability through the decline of exchange rate pass-through and exchange rate volatility.

Suggested Citation

  • Beldi Lamia & Mouldi Djelassi, 2017. "The Relationship Between Exchange Rate and Inflation Targeting in Emerging Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(11), pages 1028-1038.
    • Handle: RePEc:asi:aeafrj:v:7:y:2017:i:11:p:1028-1038:id:1615
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1615/2360
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arshid Hussain PEER & Mirza Allim BAIG, 2023. "Inflation targeting and exchange rate pass-through in India: Lessons from international experience," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(634), S), pages 239-254, Spring.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:7:y:2017:i:11:p:1028-1038:id:1615. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.