Using data from OECD economies, we show that inflation targeters suffered smaller output losses during disinflations when compared to nontargeters. We also study why some countries choose to inflation target while others do not and find that higher average inflation and smaller debt levels...

In this short article we use a simple differences-in-differences technique to investigate whether bilateral correlation of business cycles increased more amongst members of the European Monetary Union (EMU) after the implementation of the Euro than amidst other OECD economies. We present...

In this article, we seek what are the factors behind a country's decision to move to Inflation Targeting. We find that high past inflation, low debt levels and the absence of a nominal exchange rate anchor increase the probability that a country will end up opting for it.

In this short paper, we investigate if OECD economies that adopted the inflation targeting (IT) regime have been able to disinflate less costly. Isolating 99 episodes of inflation decline, we show that bringing inflation down entails much smaller output losses if the country inflation targets....