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The Effects of Inflation Targeting on Macroeconomics Performance

Author

Listed:
  • Abdelkader Aguir

    (PACTE - Pacte, Laboratoire de sciences sociales - UPMF - Université Pierre Mendès France - Grenoble 2 - UJF - Université Joseph Fourier - Grenoble 1 - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique)

  • Mounir Smida

    (MOFID-Université de Sousse)

Abstract

Since the 1990s inflation targeting (IT) has been adopted by several central banks as a strategy for monetary policy. It is expected that the adoption of this monetary regime can reduce inflation and inflation volatility. His practice was marked by a large observed at the beginning of the 90s and 2000 stability a debate emerges on efficiency and economic performance of the scheme. Many studies have focused on this question has no authority to reach a final consensus. The objective of this paper is to analysis of two macroeconomic aggregates: inflation and economic growth under different samples. Initially, we assess the evolution of these two quantities, in all countries targeting inflation, from before his adoption and post-adoption. The results of this first comparison show without exception that all inflation targeting countries had a lower and less volatile inflation. From these results we conclude that the efficiency and economic performance of this monetary policy in both the industrialized and emerging countries.

Suggested Citation

  • Abdelkader Aguir & Mounir Smida, 2014. "The Effects of Inflation Targeting on Macroeconomics Performance," Post-Print hal-03791288, HAL.
    • Handle: RePEc:hal:journl:hal-03791288
    Note: View the original document on HAL open archive server: https://hal.science/hal-03791288
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    References listed on IDEAS

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    More about this item

    Keywords

    Inflation targeting; Performance; Efficiency and stability. JEL: C40; E52; E63;
    All these keywords.

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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