Work detail

Inflation Target Setting in Emerging Markets

Author: Bc. Előd Orosz
Year: 2013 - summer
Leaders: prof. Roman Horváth Ph.D.
Work type: Bachelors
Language: English
Pages: 55
Awards and prizes:
Abstract: This thesis focuses on emerging market economies which are using inflation targeting as a monetary policy framework. We present an analyses of development of inflation target in emerging market economies and detected its determinants by econometric methods. We used Random Effects Interval Regression, Ordinary Least Squares, Random Effects Generalized Least Squares and Fixed Effects estimator. The thesis contains two main parts. First part surveys theoretical background of inflation targeting focusing on emerging markets. Second part contains an empirical study on inflation targeting. We find out that inflation target in emerging countries is affected by more factors than central banks report. Moreover we found out that price level has an inverse effect on inflation target if we examine just emerging countries, than if we examine whole group of inflation targeting countries.




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