IMF paper identifies scope for inflation targeting in Mena countries

Central Banking Newsdesk
04 Oct 2011

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Interest rates have a significant impact on private sector activity in both inflation-targeting emerging market economies and in potential inflation targeters in the Middle East and North Africa (Mena) region, according to an International Monetary Fund paper, published on Monday.

Sanchita Mukherjee and Rina Bhattacharya, the paper's authors, use panel data to examine the operation of the traditional Keynesian interest rate channel of the monetary policy transmission mechanism in five potential

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