Inflation targeting and product market deregulation
I evaluate the effect of inflation targeting on inflation and how it interacts with product market deregulation during the disinflationary process in the 1990s. Using a sample of 21 OECD countries, I show that, after controlling for product market deregulation, the effect of inflation targeting is quantitatively important and statistically significant. Moreover, product market deregulation also matters in particular in countries that adopted an inflation targeting regime. I propose a New Keynesian Phillips curve with an explicit role for market deregulation to rationalize the empirical evidence.
| Author: | Laura Moretti |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-241164 |
| Series (Serial Number) | CFS working paper series (2012,01) |
| Publisher: | Goethe-Univ., House of Finance, Center for Financial Studies |
| Place of publication: | Frankfurt am Main |
| Document Type: | Working Paper |
| Language: | English |
| Date of Publication (online): | 07.02.2012 |
| Year of first Publication: | 2012 |
| Publishing Institution: | Univ.-Bibliothek Frankfurt am Main |
| Tag: | Difference in Difference; Inflation Targeting; Product Market Deregulation |
| Pagenumber: | 29 |
| HeBIS PPN: | 312316623 |
| Institutes: | Center for Financial Studies (CFS) |
| House of Finance | |
| Dewey Decimal Classification: | 332 Finanzwirtschaft |
| JEL-Classification: | E31 Price Level; Inflation; Deflation |
| E58 Central Banks and Their Policies | |
| E65 Studies of Particular Policy Episodes | |
| L51 Economics of Regulation | |
| Licence (German): |  Veröffentlichungsvertrag für Publikationen ohne Print on Demand |
