Inflation targeting and product market deregulation

Arbeitspapier

I evaluate the effect of inflation targeting on inflation and how it interacts with product market deregulation during the disinflationary process in the 1990s. Using a sample of 21 OECD countries, I show that, after controlling for product market deregulation, the effect of inflation targeting is quantitatively important and statistically significant. Moreover, product market deregulation also matters in particular in countries that adopted an inflation targeting regime. I propose a New Keynesian Phillips curve with an explicit role for market deregulation to rationalize the empirical evidence.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFS Working Paper ; No. 2012/01

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Central Banks and Their Policies ; Studies of Particular Policy Episodes ; Economics of Regulation
• Subject: Inflation Targeting ; Product Market Deregulation ; Difference in Difference ; Inflation Targeting ; Produkt ; Markt ; Deregulierung ; New-Keynesian Phillips Curve ; Schätzung ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Moretti, Laura
• Event: Veröffentlichung
• (who): Goethe University Frankfurt, Center for Financial Studies (CFS)
• (where): Frankfurt a. M.
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/57370
• URN: urn:nbn:de:hebis:30:3-241164