Effectiveness of Inflation Targeting Strategy in Times of Financial Instability in Emerging Countries
Year: 2024
Type: article
Abstract: This paper aims to assess the effectiveness of inflation targeting policy in emerging economies during an economic crisis, particularly the 2007 financial and economic crisis. Thus, considering pre-crisis and crisis periods, an econometric model based on the difference-in-differences method (DID) was adopted. The sample consists of twelve inflation-targeting countries, the test group, and twelve non-targeting countries, the control group. The model was estimated using the EGLS method on panel data. The results show that inflation-targeting emerging countries have less control over prices during crisis than emerging countries without inflation-targeting policy.
Source: Przegląd Prawno-Ekonomiczny
DOI: 10.31743/ppe.17128
Authors: Souhila Bouhmidi, Hamza Fekir, Ismail Amani
Institutions: Université d'Oran 2, University of Oran 2 Mohamed Ben Ahmed
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405648786