The choice of inflation targeting
Author
Professor Advisor
Abstract
This paper assesses empirically the contribution of key macroeconomic and institutional
variables in shaping the likelihood of choosing the In°ation Targeting (IT) regime in a
sample that comprises countries working under such a regime and covers the period 1975-
2005. I ¯nd in°ation rate, ¯nancial development, GDP per capita and trade openness
relevant for driving the choice of IT by estimating a discrete choice panel data model.
Also, my results suggest that the initial conditions at the moment of IT adoption do
matter because countries have di®erent exposure to the likelihood of choosing IT as a
result of their speci¯c macroeconomic and institutional fundamentals and unobservable
idiosyncratic factors.
General note
Tesis para optar al título de Magíster en Economía
Identifier
URI: https://repositorio.uchile.cl/handle/2250/144764
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