Open Lecture “Exploring the Factors Leading to Inflation Targeting Adoption”

Author: Anna Samarina(University of Groningen)
Topic: Exploring the Factors Leading to Inflation Targeting Adoption
Date and time: March 6, 16:00 - 18:00
Place: IPM Business School
Working language: English.

In the course of the lecture Anna Samarina presented her paper “Exploring the Factors Leading to Inflation Targeting Adoption”. The paper examined which economic, fiscal, external, financial, and institutional characteristics of countries affect the likelihood that they adopt inflation targeting as their monetary policy strategy. The authors estimated a panel binary response model for 60 countries and two subsamples consisting of Organization for Economic Cooperation and Development (OECD) and non-OECD countries over the period 1985–2008. The findings suggested that past macroeconomic performance of a country, its fiscal discipline, exchange rate arrangements, as well as the structure and development of its financial system have a significant impact on the likelihood to adopt inflation targeting. However, the factors leading to inflation targeting adoption differ significantly between OECD and non-OECD countries.