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The influence of inflation targeting on the pass-through effect of the exchange rate
https://doi.org/10.32609/0042-8736-2018-11-70-84
Abstract
The paper studies the impact of the transition to the inflation targeting regime on the magnitude of the pass-through effect of the exchange rate to prices. We analyze cross-country panel data on developed and developing countries. It is shown that the transition to this regime of monetary policy contributes to a significant reduction in both the short- and long-term pass-through effects. This decline is stronger in developing countries. We identify the main channels that ensure the influence of the monetary policy regime on the pass-through effect, and examine their performance. In addition, we analyze the data of time series for Russia. It was concluded that even there the transition to inflation targeting led to a decrease in the dependence of the level of inflation on fluctuations in the ruble exchange rate.
About the Authors
Ph. S. Kartaev
Lomonosov Moscow State University
Russian Federation
Russian Federation
Philipp S. Kartaev
Moscow
Yu. I. Yakimova
Lomonosov Moscow State University
Russian Federation
Russian Federation
Yulia I. Yakimova
Moscow
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Review
For citations:
Kartaev P.S., Yakimova Yu.I. The influence of inflation targeting on the pass-through effect of the exchange rate. Voprosy Ekonomiki. 2018;(11):70-84. (In Russ.) https://doi.org/10.32609/0042-8736-2018-11-70-84
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