Financial Development and Success of Inflation Targeting
https://doi.org/10.38050/01300105202015
Abstract
In this paper we introduce the results of the research about the impact of financial development on the decrease in deviation of the real inflation rate from the central bank’s stated target inflation rate. Using methods of cluster analysis and panel procedures on a sample of the countries, which at the moment of writing the research officially stated to adhere to a policy of inflation targeting, we show that improving characteristics of financial development benefit the success of an inflation targeting regime (in terms of achieving its desired goal). It is also stated that for emerging economies the most vital channels of this mechanism are the increases in the efficiency and in the stability of financial markets and institutions.
About the Authors
Ph. S. Kartaev
Lomonosov Moscow State University
Russian Federation
Russian Federation
Moscow
A. K. Chernichin
Bocconi University
Italy
Italy
Milan
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Review
For citations:
Kartaev P.S., Chernichin A.K. Financial Development and Success of Inflation Targeting. Moscow University Economics Bulletin. 2020;(1):41-61. (In Russ.) https://doi.org/10.38050/01300105202015
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