Does Exchange Rate Control Improve Inflation Targeting in Emerging Economies?

Marc Pourroy (1, 2)

1 CES - Centre d'économie de la Sorbonne
2 Université de Poitiers - Faculté de Sciences économiques

Based on an original de facto classification of the exchange rate regimes, this paper provides strong evidence that hybrid inflation-targeting frameworks, in which the exchange rate is managed, deliver a stronger nominal anchor, as they better resisted the 2007-2008 inflation shock.

Mots clés: inflation-targeting; exchange rate; 2007-2008 inflation shock; monetary policy

Domaines: Economies et finances

Marc Pourroy. Does Exchange Rate Control Improve Inflation Targeting in Emerging Economies?. Economics Letters, 2012, 116 (3), pp.448-450. ⟨10.1016/j.econlet.2012.04.036⟩. ⟨hal-02619540⟩