Niamh Sheridan

The authors find no evidence that inflation targeting on average improves performance as measured by the behavior of inflation, output, or interest rates. Economists have long sought the ideal framework for monetary policy. Recently, many economists have come to believe that inflation targeting...

This paper asks whether inflation targeting improves economic performance, as measured by the behavior of inflation, output, and interest rates. We compare seven OECD countries that adopted inflation targeting in the early 1990s to thirteen that did not. After the early 90s, performance improved...