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Quantifying the Causal Effect of Inflation Targets

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  • Jorge Lorca

Abstract

This paper seeks to evaluate the benefit that the regime of inflation targeting brought in the nineties. The paper concentrates in measuring, through matching estimators, to what extent can the process of inflationary deceleration of the period be attributed exclusively to this scheme. Results show that countries that adopted inflation targets saw their level of inflation reduced by between zero and 3%, depending on the sub-period considered.

Suggested Citation

  • Jorge Lorca, 2005. "Quantifying the Causal Effect of Inflation Targets," Working Papers Central Bank of Chile 337, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:337
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_337.pdf
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    References listed on IDEAS

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