Does Inflation Targeting Matter ? An Experimental Investigation
type: Distribution
access URL: https://shs.hal.science/halshs-00877409
format: HTML
issued: 2026-05-09T05:49:36.581372
modified: 2026-05-09T05:49:36.546569

test_moissonnage_selune
type: Agent

Does Inflation Targeting Matter ? An Experimental Investigation
type: Dataset
contact point: Organization
  fn: CCSD
keyword: monetary-policy
keyword: new-keynesian-model
keyword: preprints-working-papers-
keyword: jel-e---macroeconomics-and-monetary-economicsee5---monetary-policy-central-banking-and-the-supp
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
keyword: infoeu-reposemanticspreprint
keyword: inflation-expectations
keyword: inflation-targeting
keyword: laboratory-experiments
landing page: https://shs.hal.science/halshs-00877409
description: We use laboratory experiments with human subjects to test the relevance of di-fferent inflation targeting regimes. In particular and within the standard New Keynesian model, we evaluate to what extent communication of the inflation target is relevant to the success of inflation targeting. We -find that if the central bank only cares about inflation stabilization, announcing the inflation target does not make a difference in terms of macroeconomic performances compared to a standard active monetary policy. However, if the central bank also cares about the stabilization of the economic activity, communicating the target helps to reduce the volatility of inflation, interest rate, and output gap although their average levels are not aff-ected. This finding is consistent with those of the theoretical literature and provides a rationale for the adoption of a flexible inflation targeting regime.
issued: 2026-05-09T05:49:36.561125
language: en
modified: 2026-05-09T05:49:36.561130