Arestis, Philip; Caporale, Guglielmo Maria; Cipollini, … - 2004
We utilize a stochastic volatility model to analyse the possible effects of inflation targeting on the trade …-off between output gap variability and inflation variability. We find that the adoption of inflation targets (in New Zealand …, Switzerland, Germany, France and the Netherlands). We focus on two possible explanations for the performance of the inflation …