Economics, Econometrics and Finance
8 years ago

Inflation targeting policy boosts economic stability in developing countries.

Asian Economic and Financial Review
Enhanced Economic Stability and the Role of Inflation Targeting Policy: Empirical Study on Case of Developing Countries
Olfa Manai Daboussi

Paper Summary

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Inflation targeting is a popular monetary policy used by many countries, including developing ones. A study looked at how inflation targeting affects the economy in these countries from 1980 to 2012. By analyzing data, they found that inflation targeting helps reduce inflation rates, especially in countries with high inflation levels. This shows that using inflation targeting can improve economic performance in developing nations.