Publication
Aug 2007
This paper addresses the problem of central banks in transition economies that aim at comparatively high inflation rates mainly to make up for, and exploit, lagging internal and external liberalization in their economies. The authors provide out-of-sample forecasts, based on expected developments in the underlying structure of such economies and suggest that incentives may be diminishing, but not to the point where inflation levels below 5 percent could credibly be announced as targets.
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English (PDF, 33 pages, 264 KB) |
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Author | Felix Hammermann, Mark Flanagan |
Series | Kiel Institute Working Papers |
Issue | 1373 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2007 Kiel Institute for the World Economy |