Does inflation targeting matter for PPP? An empirical investigation

This article examines whether Inflation Targeting (IT) matters for long-run Purchasing Power Parity (PPP). For this purpose, we formally assess the evidence on PPP for a panel of 19 countries using two price indices and two panel unit root tests with cross-sectional dependence. The empirical results show that IT plays an important role in providing favourable evidence for long-run PPP.

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Year of publication:	2012
Authors:	Ding, Hui ; Kim, Jaebeom
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 19.2012, 18, p. 1777-1780
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010548741