Inflation Targeting and Macro-Economic Performance: The Case of Emerging Countries

This study aims to examine the effect of an inflation targeting strategy on the macroeconomic performance notably inflation and growth in the context of emerging countries. Empirically, our research based on two samples of emerging countries, one is composed of 17 non-targeted countries and the other is composed of 11 targeted countries, over the 1985- 2012 period. The comparisons of the means between these two samples and between the pre-and post- targeting two periods reveal that the strategy of inflation targeting can provide a slight improvement for economic growth and a good inflation control for the targeted countries compared to the countries that are not targeted. However, the estimate of the effect of inflation targeting on growth and inflation for all the samples, targeted countries and not targeted, reveal that the strategy of targeting can curb inflation but its impact on growth is not obvious.

Full Text: PDF     DOI: 10.15640/jeds.v4n2a5