Inflation targeting boosts growth in advanced economies, but not in developing ones.
The article explores whether countries adopting inflation targeting see changes in their economic performance. It compares inflation rates and economic growth between countries with and without explicit inflation targets. The study finds that countries with inflation targets tend to have lower inflation rates, especially in developing economies. However, the impact on economic growth varies: advanced economies with targets experience higher growth, while developing economies do not see significant growth benefits in the medium term. This suggests that developing economies may need more time to see the economic benefits of inflation targeting.