Developing states can improve inflation targeting – IMF paper

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Inflation targeting would be more effective in developing countries if accompanied by the right fiscal and exchange rate policies, an IMF working paper finds.

Settling the Inflation Targeting Debate: Lights from a Meta-Regression Analysis by Hippolyte Balima, Eric Kilama and René Tapsoba finds the adoption of inflation targeting “is likely to bear more fruits (price and output stability) when fully implemented in developing countries”.

The authors argue monetary policy credibility is still

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