San Fran Fed research analyses link between inflation targeting and growth
Developing economies tend not to experience the same short-term bump in growth
Developing economies do not experience the same boost to growth after adopting inflation-targeting regimes as advanced economies, according to research published by the Federal Reserve Bank of San Francisco.
In an economic letter published on May 4, Galina Hale and Alexej Philippov find, through empirical analysis, the adoption of an inflation targeting regime has "a positive effect" on economic growth in advanced economies, as well as lower inflation.
"However, we find that developing economies
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