Inflation targeting and inflation behaviour : a succesful story?

Research output: Contribution to journalArticle in a journalpeer-review


This paper estimates the effects of inflation targeting (IT) adoption over inflation dynamics using a wide control group. We contribute to the current IT evaluation literature by considering the adoption of IT by a country as a treatment, just as in the program evaluation literature. Hence, we perform propensity score matching to find suitable counterfactuals to the actual inflation targeters. We find out that IT has helped in reducing the level and volatility of inflation in the countries that adopted it. This result is robust to alternative definitions of treatment and control groups.
Original languageEnglish
Pages (from-to)153-175
JournalInternational Journal of Central Banking
StatePublished - Dec 2005

Bibliographical note

Bibliografía: páginas 173-175

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