Latin American inflation differentials with USA inflation: Does Inflation Targeting make a difference?

Carlos A. Carrasco, Jesus Ferreiro

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

The objective of the paper is to analyse whether the use of Inflation Targeting (IT) has had an impact on the process of convergence of inflation rates between Latin American countries and the United States. The analysis is made using non-habitual convergence tests. Some implications arise from our analysis. First, IT countries have lower inflation than countries with different monetary strategies. Second, the disinflationary process has been widespread, taking place in Latin America later than in developed countries. Finally, countries with other monetary policy strategies have also reduced the levels and dispersion of their inflation rates. © 2013 © 2013 Taylor & Francis.
Original languageEnglish
Pages (from-to)13-32
Number of pages20
JournalJournal of Economic Policy Reform
DOIs
Publication statusPublished - 1 Jan 2014
Externally publishedYes

Fingerprint

Inflation differentials
Inflation targeting
Inflation
Inflation rate
Monetary policy
Latin American countries
Latin America
Developed countries

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Economics, Econometrics and Finance(all)

Cite this

@article{2182b92ee62345778a2f71318f1327ca,
title = "Latin American inflation differentials with USA inflation: Does Inflation Targeting make a difference?",
abstract = "The objective of the paper is to analyse whether the use of Inflation Targeting (IT) has had an impact on the process of convergence of inflation rates between Latin American countries and the United States. The analysis is made using non-habitual convergence tests. Some implications arise from our analysis. First, IT countries have lower inflation than countries with different monetary strategies. Second, the disinflationary process has been widespread, taking place in Latin America later than in developed countries. Finally, countries with other monetary policy strategies have also reduced the levels and dispersion of their inflation rates. {\circledC} 2013 {\circledC} 2013 Taylor & Francis.",
author = "Carrasco, {Carlos A.} and Jesus Ferreiro",
year = "2014",
month = "1",
day = "1",
doi = "10.1080/17487870.2013.787794",
language = "English",
pages = "13--32",
journal = "Journal of Economic Policy Reform",
issn = "1748-7870",
publisher = "Routledge",

}

TY - JOUR

T1 - Latin American inflation differentials with USA inflation: Does Inflation Targeting make a difference?

AU - Carrasco, Carlos A.

AU - Ferreiro, Jesus

PY - 2014/1/1

Y1 - 2014/1/1

N2 - The objective of the paper is to analyse whether the use of Inflation Targeting (IT) has had an impact on the process of convergence of inflation rates between Latin American countries and the United States. The analysis is made using non-habitual convergence tests. Some implications arise from our analysis. First, IT countries have lower inflation than countries with different monetary strategies. Second, the disinflationary process has been widespread, taking place in Latin America later than in developed countries. Finally, countries with other monetary policy strategies have also reduced the levels and dispersion of their inflation rates. © 2013 © 2013 Taylor & Francis.

AB - The objective of the paper is to analyse whether the use of Inflation Targeting (IT) has had an impact on the process of convergence of inflation rates between Latin American countries and the United States. The analysis is made using non-habitual convergence tests. Some implications arise from our analysis. First, IT countries have lower inflation than countries with different monetary strategies. Second, the disinflationary process has been widespread, taking place in Latin America later than in developed countries. Finally, countries with other monetary policy strategies have also reduced the levels and dispersion of their inflation rates. © 2013 © 2013 Taylor & Francis.

U2 - 10.1080/17487870.2013.787794

DO - 10.1080/17487870.2013.787794

M3 - Article

SP - 13

EP - 32

JO - Journal of Economic Policy Reform

JF - Journal of Economic Policy Reform

SN - 1748-7870

ER -