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May 8, 2026International Journal of Finance & Economics

Does Inflation Targeting Enhance Economic Performance? Evidence From Asian Economies

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Authors

CSChandan SethiBMBibhuti Ranjan Mishra

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Overview

Randomized trial examines inflation targeting's impact on macroeconomic performance in Asian economies, suggesting varied effects.

Key Points

  • This paper investigates the effects of inflation targeting policies on key economic indicators in Asian economies from 1998 to 2023.
  • Examined 28 Asian economies from 1998 to 2023
  • Employed propensity score matching and panel‐corrected standard errors for analysis
  • Inflation targeting significantly reduced inflation and exchange rate volatility
  • No significant effect observed on GDP growth
  • A positive impact on unemployment was noted, indicating trade-offs with disinflationary policies

Cite This Study

Sethi et al. (2026) studied this question.

synapsesocial.com/papers/69fd7f0dbfa21ec5bbf07712https://doi.org/10.1002/ijfe.70211
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