Artículos de revistas
Inflation targeting in emerging economies: What do the data say?
Fecha
2008Registro en:
JOURNAL OF DEVELOPMENT ECONOMICS, v.85, n.1/Fev, p.312-318, 2008
0304-3878
10.1016/j.jdeveco.2006.07.002
Autor
GONCALVES, Carlos Eduardo S.
SALLES, Joao M.
Institución
Resumen
In a recent thought-provoking paper, Ball and Sheridan [Ball, L., Sheridan, N., 2005. Does inflation targeting matter? In: Bernanke, B.S., Woodford, M. (Eds.), The Inflation-Targeting Debate, University of Chicago Press] show that the available evidence for a group of developed economies does not lend credence to the belief that adopting an inflation targeting regime (IT) was instrumental in bringing inflation and inflation volatility down. Here, we extend Ball and Sheridan`s analysis for a subset of 36 emerging market economies and find that, for them, the story is quite different. Compared to non-targeters, developing countries adopting the IT regime not only experienced greater drops in inflation, but also in growth volatility, thus corroborating the view that the regime`s ""constrained flexibility"" to deal with adverse shocks delivered concrete welfare gains. (c) 2006 Elsevier B.V. All rights reserved.