Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5092560 | Journal of Comparative Economics | 2011 | 15 Pages |
Abstract
⺠This is the first study analyzing expectations in emerging economies by means of the Taylor rule. ⺠It provides evidence that countries having an inflation targeting regime stabilize expectations. ⺠Non-inflation targeting central banks cannot stabilize inflation expectations. ⺠We find that forecasters use the inflation target rate to forecast real and financial variables. ⺠We show that the monetary policy regime influences the expectation formation process.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ralf Fendel, Michael Frenkel, Jan-Christoph Rülke,