Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth

Yutaka Kurihara

doi:doi:10.11648/j.jwer.20130206.11

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Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth

Yutaka Kurihara

Published in Journal of World Economic Research (Volume 2, Issue 6)

Received: 27 November 2013 Published: 30 December 2013

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Abstract

Recently, inflation targeting has been adopted in many countries. One important achievement derived from the assessment of this framework can be exchange rate stability, as exchange rate is thought to relate to the target of the inflation rate itself or a stable inflation rate. This article provides empirical analysis of whether or not the adoption of inflation targeting framework has reduced exchange rate volatility. Also, as the final goal of this framework is to attain sound economic growth with a stable and adequate inflation rate, the relationship between inflation targeting and economic growth is examined. The results show that inflation targeting reduces exchange rate volatility and causes economic growth.

Published in	Journal of World Economic Research (Volume 2, Issue 6)
DOI	10.11648/j.jwer.20130206.11
Page(s)	104-109
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Exchange Rate, Growth, Inflation Targeting, Volatility

References

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APA Style

Yutaka Kurihara. (2013). Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth. Journal of World Economic Research, 2(6), 104-109. https://doi.org/10.11648/j.jwer.20130206.11

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ACS Style

Yutaka Kurihara. Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth. J. World Econ. Res. 2013, 2(6), 104-109. doi: 10.11648/j.jwer.20130206.11

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AMA Style

Yutaka Kurihara. Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth. J World Econ Res. 2013;2(6):104-109. doi: 10.11648/j.jwer.20130206.11

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@article{10.11648/j.jwer.20130206.11,
  author = {Yutaka Kurihara},
  title = {Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth},
  journal = {Journal of World Economic Research},
  volume = {2},
  number = {6},
  pages = {104-109},
  doi = {10.11648/j.jwer.20130206.11},
  url = {https://doi.org/10.11648/j.jwer.20130206.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20130206.11},
  abstract = {Recently, inflation targeting has been adopted in many countries. One important achievement derived from the assessment of this framework can be exchange rate stability, as exchange rate is thought to relate to the target of the inflation rate itself or a stable inflation rate. This article provides empirical analysis of whether or not the adoption of inflation targeting framework has reduced exchange rate volatility. Also, as the final goal of this framework is to attain sound economic growth with a stable and adequate inflation rate, the relationship between inflation targeting and economic growth is examined. The results show that inflation targeting reduces exchange rate volatility and causes economic growth.},
 year = {2013}
}

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TY  - JOUR
T1  - Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth
AU  - Yutaka Kurihara
Y1  - 2013/12/30
PY  - 2013
N1  - https://doi.org/10.11648/j.jwer.20130206.11
DO  - 10.11648/j.jwer.20130206.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 104
EP  - 109
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20130206.11
AB  - Recently, inflation targeting has been adopted in many countries. One important achievement derived from the assessment of this framework can be exchange rate stability, as exchange rate is thought to relate to the target of the inflation rate itself or a stable inflation rate. This article provides empirical analysis of whether or not the adoption of inflation targeting framework has reduced exchange rate volatility. Also, as the final goal of this framework is to attain sound economic growth with a stable and adequate inflation rate, the relationship between inflation targeting and economic growth is examined. The results show that inflation targeting reduces exchange rate volatility and causes economic growth.
VL  - 2
IS  - 6
ER  -

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Author Information

Yutaka Kurihara

Department of Economics, Aichi University, Nagoya, Japan

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APA Style

Yutaka Kurihara. (2013). Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth. Journal of World Economic Research, 2(6), 104-109. https://doi.org/10.11648/j.jwer.20130206.11

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ACS Style

Yutaka Kurihara. Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth. J. World Econ. Res. 2013, 2(6), 104-109. doi: 10.11648/j.jwer.20130206.11

Copy | Download

AMA Style

Yutaka Kurihara. Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth. J World Econ Res. 2013;2(6):104-109. doi: 10.11648/j.jwer.20130206.11

Copy | Download

@article{10.11648/j.jwer.20130206.11,
  author = {Yutaka Kurihara},
  title = {Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth},
  journal = {Journal of World Economic Research},
  volume = {2},
  number = {6},
  pages = {104-109},
  doi = {10.11648/j.jwer.20130206.11},
  url = {https://doi.org/10.11648/j.jwer.20130206.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20130206.11},
  abstract = {Recently, inflation targeting has been adopted in many countries. One important achievement derived from the assessment of this framework can be exchange rate stability, as exchange rate is thought to relate to the target of the inflation rate itself or a stable inflation rate. This article provides empirical analysis of whether or not the adoption of inflation targeting framework has reduced exchange rate volatility. Also, as the final goal of this framework is to attain sound economic growth with a stable and adequate inflation rate, the relationship between inflation targeting and economic growth is examined. The results show that inflation targeting reduces exchange rate volatility and causes economic growth.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Does Adoption of Inflation Targeting Reduce Exchange Rate Volatility and Enhance Economic Growth
AU  - Yutaka Kurihara
Y1  - 2013/12/30
PY  - 2013
N1  - https://doi.org/10.11648/j.jwer.20130206.11
DO  - 10.11648/j.jwer.20130206.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 104
EP  - 109
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20130206.11
AB  - Recently, inflation targeting has been adopted in many countries. One important achievement derived from the assessment of this framework can be exchange rate stability, as exchange rate is thought to relate to the target of the inflation rate itself or a stable inflation rate. This article provides empirical analysis of whether or not the adoption of inflation targeting framework has reduced exchange rate volatility. Also, as the final goal of this framework is to attain sound economic growth with a stable and adequate inflation rate, the relationship between inflation targeting and economic growth is examined. The results show that inflation targeting reduces exchange rate volatility and causes economic growth.
VL  - 2
IS  - 6
ER  -

Copy | Download