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Inflation Targeting and Business Cycle Synchronization

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  • Flood, Robert P
  • Rose, Andrew

Abstract

Inflation targeting seems to have a small but positive effect on the synchronization of business cycles; countries that target inflation seem to have cycles that move slightly more closely with foreign cycles. Thus the advent of inflation targeting does not explain the decoupling of global business cycles, for two reasons. Indeed business cycles have not in fact become less synchronized across countries.

Suggested Citation

  • Flood, Robert P & Rose, Andrew, 2009. "Inflation Targeting and Business Cycle Synchronization," CEPR Discussion Papers 7377, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:7377
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    More about this item

    Keywords

    Bilateral; Data; Empirical; Gdp; Insulation; Regime;
    All these keywords.

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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