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dc.titleOn the Credibility of Inflation Targeting Regimes in Latin America
dc.contributor.authorMariscal, Rodrigo
dc.contributor.authorPowell, Andrew
dc.contributor.authorTavella, Pilar
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America
dc.date.available2014-08-27T00:00:00
dc.date.issue2014-08-27T00:00:00
dc.description.abstractInflation targeting has been adopted in a set of emerging economies, including eight countries in Latin America. The success of this regime may depend critically on the credibility of the target and the expectation that the authorities will take appropriate actions if the target is breached. This paper exploits a database of inflation expectations and attempts to measure whether, for a set of inflation targeters in Latin America, expectations are well anchored. A tighter anchoring of expectations is interpreted as a gain in credibility. Also considered are the effects on the credibility of the regime if the inflation target is breached. The results indicate that while inflation expectations have not been fully anchored over the whole sample period, credibility has risen, but at the same time the cost of breaching the target has grown.
dc.format.extent26
dc.identifier.doihttp://dx.doi.org/10.18235/0011653
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/On-the-Credibility-of-Inflation-Targeting-Regimes-in-Latin-America.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectMonetary Policy
dc.subject.jelcodeE31 - Price Level • Inflation • Deflation
dc.subject.jelcodeE42 - Monetary Systems • Standards • Regimes • Government and the Monetary System • Payment Systems
dc.subject.jelcodeE58 - Central Banks and Their Policies
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordsInflation targeting;Expectations;Latin America;Credibility
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1198
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