Why hit the target? - Does the use of inflation targeting help stabilize inflation and increase GDP?
This paper studies the effects of inflation targeting on inflation, inflation expectations, and GDP growth in developed countries, where such a regime has been implemented. The results are compared to those of the control group of developed countries, that have not introduced an inflation-targeting regime. The data is from the period 1980-2017 and is sourced from the International Monetary Fund an
