Thórarinn G. Pétursson - 2009
�exibility.
2.2. A selective review of the empirical in�ation-targeting literature
The literature on the economic e�ects of IT is ….e. the share of exchange rate �uctuations
not related to economic fundamentals. Using a signal-extraction approach to … argued that the adoption of in�ation targeting (IT) leads to increased
volatility of other economic variables, such as output …