{"product_id":"monetary-regime-switch-from-exchange-rate-to-inflation-targeting-von-marjan-petreski","title":"Monetary-regime switch from exchange-rate to inflation targeting","description":"\u003cp\u003eThe study investigates whether a switch from exchange-rate targeting to inflation targeting will facilitate a more appropriate monetary policy and a more stable macroeconomic environment in developing economies. The research finds that the exchange-rate regime is not significant in explaining growth. The empirical evidence on its effect on output volatility suggests that a terms-of-trade shock larger than seven percentage points under a fixed exchange-rate regime will give higher output volatility compared to a float. Given these findings, the study suggests the exchange rate be made flexible and that the direct targeting of inflation is a rational choice in the aftermath of peg exit. To investigate whether monetary-policy responses change under such a regime switching, allowing for the possibility of an endogenous switch, the study estimates augmented Taylor rule with two approaches: a panel switching regression; and a Markov-switching VAR. Results from both suggest that inflation targeting represented a real switch in developing economies.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783845401546\"\u003e\u003ch3\u003e- with reference to developing economies -\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783845401546","offer_id":39471205810269,"sku":"9783845401546","price":79.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/9a52beda-dfaa-4e1c-8080-44209100a145.jpg?v=1776231831","url":"https:\/\/shop.autorenwelt.de\/products\/monetary-regime-switch-from-exchange-rate-to-inflation-targeting-von-marjan-petreski","provider":"Autorenwelt Shop","version":"1.0","type":"link"}