Testing the Transparency Benefits of Inflation Targeting PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Testing the Transparency Benefits of Inflation Targeting PDF full book. Access full book title Testing the Transparency Benefits of Inflation Targeting by Christopher W. Crowe. Download full books in PDF and EPUB format.

Testing the Transparency Benefits of Inflation Targeting

Testing the Transparency Benefits of Inflation Targeting PDF Author: Christopher W. Crowe
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 36

Get Book Here

Book Description
I test whether inflation targeting (IT) enhances transparency using inflation forecast data for 11 IT adoption countries. IT adoption promotes convergence in forecast errors, suggesting that it enhances transparency. This effect is robust to dropping observations, is strengthened by using instrumental variable estimation to eliminate mean-reversion, and is absent in placebo regressions (where IT adoption is shifted by a year). This result supports Morris and Shin's (2002) contention that better public information is most beneficial for forecasters with bad private information. However, it does not support their hypothesis that better public information could make private forecasts less accurate.