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Testing the transparency benefits of inflation targeting : evidence from private sector forecasts /
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 instrument...
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Autor Corporativo: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
Washington, D.C. :
International Monetary Fund, Research Dept.,
2006.
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| Colección: | IMF working paper ;
WP/06/289. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | 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. |
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| Descripción Física: | 1 online resource (29 pages) : illustrations |
| Bibliografía: | Includes bibliographical references (pages 26-29). |
| ISBN: | 1282391739 9781282391734 9781451910025 1451910029 1462378048 9781462378043 1452750130 9781452750132 9786613820167 6613820164 |
| ISSN: | 2227-8885 ; |