Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7364932 | Journal of International Financial Markets, Institutions and Money | 2014 | 11 Pages |
Abstract
We examine whether the inflation rates of the countries that pursue inflation targeting policies have converged as opposed to the experience of the OECD non-inflation targeters. Using a methodology introduced by Pesaran (2007a), we examine the stationarity properties of the inflation differentials. This approach has the advantage of avoiding setting arbitrarily a specific country as the benchmark economy. Our results indicate that the inflation rates converge irrespective of the monetary policy framework.
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Authors
Philip Arestis, Georgios Chortareas, Georgios Magkonis, Demetrios Moschos,