Does inflation targeting really make a difference? Evaluating the treatment effect of inflation targeting in seven industrial countries

• 成果类型: Article
• 署名作者: Lin, Shu; Ye, Haichun
• 署名单位: State University System of Florida; Florida Atlantic University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2007.06.017
• 发表日期: 2007
• 页码: 2521-2533
• 关键词: Inflation targeting; inflation; Propensity score matching

摘要

We evaluate the treatment effect of inflation targeting in seven industrial countries that adopted this policy in the 1990s. To address the self-selection problem of policy adoption, we make use of a variety of propensity score matching methods recently developed in the treatment effect literature. Our results show that inflation targeting has no significant effects on either inflation or inflation variability in these seven countries. Further evidence from long-term nominal interest rates and income velocity of money also supports the window-dressing view of inflation targeting. (c) 2007 Elsevier B.V. All rights reserved.