Netherlands Bank paper identifies determinants of inflation-targeting adoption

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Countries with low inflation and a flexible exchange rate regime are more likely to adopt an inflation-targeting regime, according to a Netherlands Bank paper published on Wednesday.

Hanna Samaryna and Jakob de Haan, the paper's authors, estimate a panel binary response transition model for 60 countries in Organisation for Economic Co-operation and Development (OECD) and non-OECD countries between 1985 and 2008. They do this to examine which economic, fiscal, external, financial and

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