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    Do inflation targeting handcuffs restrain leviathan? Hard pegs vs. inflation targets for fiscal discipline in emerging markets

    Date
    7/1/2007
    Author
    Miles, William
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    Citation
    William Miles (2007) Do inflation targeting handcuffs restrain leviathan? Hard pegs vs. inflation targets for fiscal discipline in emerging markets, Applied Economics Letters, 14:9, 647-651
    Abstract
    Inflation targeting has been increasingly adopted in emerging markets as fixed exchange rates have fallen in popularity. An important question is whether inflation targeting provides the same level of fiscal discipline as a hard peg. Using the methodology of Fatas and Rose (2001), results here indicate that multilateral currency unions and currency boards lead to tighter fiscal policy than inflation targets.
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    URI
    http://www.tandfonline.com/doi/citedby/10.1080/13504850500447448
    http://hdl.handle.net/10057/13035
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