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Inflation Targeting and Macroeconomic Stabilization

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  • Mehdi Monadjemi
  • John Lodewijks

Abstract

Inflation targeting has been a key objective of the European Monetary Union. This article presents empirical evidence indicating that this macroeconomic objective has been successfully achieved. However, despite expectations that inflation control would provide the foundation for robust and healthy growing economies, other important macroeconomic outcomes have not been achieved. This suggests that inflation targeting is not a sufficient condition for macroeconomic stabilization.

Suggested Citation

  • Mehdi Monadjemi & John Lodewijks, 2014. "Inflation Targeting and Macroeconomic Stabilization," Research in World Economy, Research in World Economy, Sciedu Press, vol. 5(2), pages 93-98, September.
    • Handle: RePEc:jfr:rwe111:v:5:y:2014:i:2:p:93-98
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    References listed on IDEAS

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    6. Olivier Blanchard & Giovanni Dell'Ariccia & Paolo Mauro, 2010. "Rethinking Macroeconomic Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(s1), pages 199-215, September.
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