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Sticky Inflationary Expectations and Inflation Targeting in (some) Emerging and Less Developed Economies

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  • Santiago Taboada
  • Emiliano Libman

Abstract

We describe the experience of some economies that struggle to consolidate Inflation Targeting. We document the resilience of inflationary expectations during the first years after adoption by Israel, Brazil, Guatemala, Mexico, South Africa, and Turkey. The benchmark case of New Zealand is also described, and the experience of Argentina is presented as one of the few examples where Inflation Targeting failed and was eventually abandoned. ****** En este artículo se describe la experiencia de algunas economías que lucharon por consolidar metas de inflación. Se documenta la resiliencia de las expectativas de inflación durante los primeros anos en Israel, Brasil, Guatemala, México, Sudáfrica y Turquía. Los casos de Nueva Zelandia y Argentina —donde las metas fracasaron— se analizaron con fines comparativos. ****** Neste artigo descreve-se a experiencia de algumas economias que lutaram para consolidar metas de inflacao. Documenta-se a resiliencia das expectativas de inflacao durante os primeiros anos em Israel, Brasil, Guatemala, México, África do Sul e Turquia. Os casos da Nova Zelandia e Argentina—onde as metas falharam—foram analisados para fins comparativos.

Suggested Citation

  • Santiago Taboada & Emiliano Libman, 2021. "Sticky Inflationary Expectations and Inflation Targeting in (some) Emerging and Less Developed Economies," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 40(82), pages 83-111, February.
    • Handle: RePEc:col:000093:020161
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    References listed on IDEAS

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    More about this item

    Keywords

    Inflation targeting; expected inflation; Taylor-rules.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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