Testing the Transparency Benefits of Inflation Targeting: Evidence from Private Sector Forecasts Christopher W. Crowe

ISBN: 9786613820167

Published: December 1st 2006

ebook

31 pages


Description

Testing the Transparency Benefits of Inflation Targeting: Evidence from Private Sector Forecasts  by  Christopher W. Crowe

Testing the Transparency Benefits of Inflation Targeting: Evidence from Private Sector Forecasts by Christopher W. Crowe
December 1st 2006 | ebook | PDF, EPUB, FB2, DjVu, audiobook, mp3, ZIP | 31 pages | ISBN: 9786613820167 | 4.76 Mb

I test whether inflation targeting (IT) enhances transparency using inflation forecast data for 11 IT adoption countries. IT adoption promotes convergence in forecast errors, suggesting that it enhances transparency. This effect is robust to droppingMoreI test whether inflation targeting (IT) enhances transparency using inflation forecast data for 11 IT adoption countries. IT adoption promotes convergence in forecast errors, suggesting that it enhances transparency. This effect is robust to dropping observations, is strengthened by using instrumental variable estimation to eliminate mean-reversion, and is absent in placebo regressions (where IT adoption is shifted by a year).

This result supports Morris and Shins (2002) contention that better public information is most beneficial for forecasters with bad private information. However, it does not support their hypothesis that better public information could make private forecasts less accurate.



Enter the sum





Related Archive Books



Related Books


Comments

Comments for "Testing the Transparency Benefits of Inflation Targeting: Evidence from Private Sector Forecasts":


localsonly.eu

©2009-2015 | DMCA | Contact us