IMF: inflation targeting reduces dollarisation
An IMF paper published on Tuesday shows that adopting an inflation targeting framework can reduce levels of dollarisation and improve the effectiveness of monetary policy.
Anna Rose Bordon and Anke Weber, the paper's authors, use a Markov-Switching vector autoregression framework to examine the impact of Armenia's 2006 move towards an inflation targeting framework on monetary policy transmission channels.
Bordon and Weber observe an increase in the effectiveness of monetary transmission
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