Work detail

The Performance of inflation targeting in emerging market economies

Author: Mgr. Sidita Reshketa,
Year: 2018 - summer
Leaders: doc. Mgr. Tomáš Holub Ph.D.
Work type: Masters
Language: English
Pages: 66
Awards and prizes:
Abstract: The aim of the thesis is to study the performance of emerging economies under the inflation
targeting as a framework. This framework is characterized by the direct target that it has on
inflation which should be achieved within a period. Inflation targeting was initially adopted
by industrialized economies, and the outcomes throughout the years have been substantially
good for other economies to join this framework. The dataset used is updated with data from
after the financial crises allowing space for us to test another hypothesis about the importance
of inflation targeting during the financial crises. We used difference to difference model to
test our hypothesis and we concluded that inflation targeting does not have any significant
statistical effect on the output growth, but it does have a statistical significant effect in the
inflation rate. We also pointed out that the economies that were targeting inflation during the
financial crises performed much better compared to the ones which did not.


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