Asab, N.A., Cuestas, J.C. and Montagnoli, A. orcid.org/0000-0002-8260-4531 (2018) Inflation targeting or exchange rate targeting: Which framework supports the goal of price stability in emerging market economies? PLoS ONE, 13 (8). e0201798. ISSN 1932-6203
Abstract
The paper investigates and compares the relationship between inflation and inflation uncertainty under inflation targeting and, alternatively, a conventional fixed exchange rate system, for a group of emerging countries. To do so we estimate GARCH in mean models and we find that there is a bi-directional relationship between inflation and inflation uncertainty under the two monetary regimes. It is also found that the fixed exchange rate regime has no impact on average inflation and inflation inertia, while inflation targeting has been successful at lowering both average inflation and inflation persistence.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2018 Abu Asab et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. http://creativecommons.org/licenses/by/4.0/ |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 17 Aug 2018 09:56 |
Last Modified: | 12 Sep 2018 12:46 |
Published Version: | https://doi.org/10.1371/journal.pone.0201798 |
Status: | Published |
Publisher: | Public Library of Science (PLoS) |
Refereed: | Yes |
Identification Number: | 10.1371/journal.pone.0201798 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:134705 |