Scholarlink

<p>Drawing from the ongoing theoretical and empirical debate on the choice of the right inflation measure, this paper examines the effects of inflation targeting (IT) on headline and core inflation. The study covers a global sample of 85 emerging and developing countries (EMDCs) for the period 1980-2022. Using propensity score matching as the main econometric approach, we find that IT significantly reduces headline and core inflation. Various robustness tests confirm that this result is not sensitive to the use of alternative specifications, nor to changes in econometric approach, nor even to the use of different measure of IT. The results also show that IT significantly reduces headline and core inflation volatility. The lesson that emerges from this study is that whatever the official measure of inflation adopted by targeting central banks, this monetary policy framework remains effective in reducing both headline and core inflation.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Investigating the Headline vs. Core Inflation Debate: Does Inflation Targeting Kill Two Birds with One Stone?

  • 期刊论文

  • 发表日期：

    2025年10月31日

查看全文
  • Christophe Martial Mbassi

摘要

Drawing from the ongoing theoretical and empirical debate on the choice of the right inflation measure, this paper examines the effects of inflation targeting (IT) on headline and core inflation. The study covers a global sample of 85 emerging and developing countries (EMDCs) for the period 1980-2022. Using propensity score matching as the main econometric approach, we find that IT significantly reduces headline and core inflation. Various robustness tests confirm that this result is not sensitive to the use of alternative specifications, nor to changes in econometric approach, nor even to the use of different measure of IT. The results also show that IT significantly reduces headline and core inflation volatility. The lesson that emerges from this study is that whatever the official measure of inflation adopted by targeting central banks, this monetary policy framework remains effective in reducing both headline and core inflation.