IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/20452_35.html
   My bibliography  Save this book chapter

Inflation targeting and fiscal discipline in selected emerging economies

In: Handbook of Banking and Finance in Emerging Markets

Author

Listed:
  • Milojko Arsić
  • Zorica Mladenović
  • Aleksandra Nojković

Abstract

We examine the fiscal performance resulting from adopting an inflation targeting (IT) policy in emerging market economies from Europe and Central Asia for the period 1997-2019. The significant links between IT policy and fiscal variables are found to be limited. According to the dynamic panel model, IT improves the cyclically adjusted overall and primary fiscal balance in the period 1997-2019, whereas it has been improving the overall and primary fiscal balance since 2008. The application of propensity score matching has shown that the introduction of IT affects the reduction of the public debt-to-gross domestic product (GDP) ratio, but it is not certain that this result reflects a causal link. Contrary to successful monetary performances of IT policy in many emerging economies, more coordination between fiscal and monetary policy seems to be needed for this policy to be effective beyond the monetary sector.

Suggested Citation

  • Milojko Arsić & Zorica Mladenović & Aleksandra Nojković, 2022. "Inflation targeting and fiscal discipline in selected emerging economies," Chapters, in: Duc K. Nguyen (ed.), Handbook of Banking and Finance in Emerging Markets, chapter 35, pages 651-674, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20452_35
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/edcoll/9781800880900/9781800880900.00045.xml
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Development Studies; Economics and Finance;

    Statistics

    Access and download statistics

    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:elg:eechap:20452_35. 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: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    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.