Inflation-Target Design: Changing Inflation Performance and Persistence in Industrial Countries

The author estimates a simple model that illustrates whether inflation persistence has changed in a significant fashion in inflation targeting vs. non inflation-targeting countries. Although he notes that it is too early for a definitive assessment of inflation targeting, he add that from the standpoint of economic analysis and empirical performance to date, a policy of inflation control offers as good a chance as any policy regime to produce consistently good macroeconomic performance.