Effects of the implementation of the inflation targeting regime on economic growth
This research study is focused on the examination of the influence of the introduction and implementation of the monetary Inflation Targeting (IT) regime: the level of the inflation rate and the Gross Domestic Product (GDP) growth rate, as well as inflation and the GDP volatility. Conditional varian...
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| Format: | Article |
| Language: | English |
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University of Kragujevac
2022-12-01
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| Series: | Economic Horizons |
| Subjects: | |
| Online Access: | https://horizonti.ekfak.kg.ac.rs/sites/default/files/Casopis/2022_3/EH_2022_3_en_6_SS.pdf |
| _version_ | 1797685940215349248 |
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| author | Suzana Stevanovic Ivan Milenkovic Sladjana Paunovic |
| author_facet | Suzana Stevanovic Ivan Milenkovic Sladjana Paunovic |
| author_sort | Suzana Stevanovic |
| collection | DOAJ |
| description | This research study is focused on the examination of the influence of the introduction and implementation of the monetary Inflation Targeting (IT) regime: the level of the inflation rate and the Gross Domestic Product (GDP) growth rate, as well as inflation and the GDP volatility. Conditional variance is calculated by fitting an empirical Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to an annualized quarterly date for the period from 1993Q1 to 2020Q3, all in order to assess volatility. The results of the regression model showed that there was a positive statistical significance between the instability of inflation and the instability of the growth rate of the GDP in the three analyzed countries (namely in Albania, Turkey and the Republic of Serbia). The result of introducing the IT regime when the GDP growth rate volatility is concerned is statistically significant in Serbia and Turkey and led to reduction in the GDP volatility and stabilization. However, the applied regression model indicated that, in the case of Albania and Romania, the introduction of the IT regime did not have a statistically significant impact on the GDP growth rate volatility.
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| first_indexed | 2024-03-12T00:58:29Z |
| format | Article |
| id | doaj.art-cdd50dbdde98404995590005b071d27b |
| institution | Directory Open Access Journal |
| issn | 1450-863X 2217-9232 |
| language | English |
| last_indexed | 2024-03-12T00:58:29Z |
| publishDate | 2022-12-01 |
| publisher | University of Kragujevac |
| record_format | Article |
| series | Economic Horizons |
| spelling | doaj.art-cdd50dbdde98404995590005b071d27b2023-09-14T10:41:17ZengUniversity of KragujevacEconomic Horizons1450-863X2217-92322022-12-0124328529810.5937/ekonhor2203281DEffects of the implementation of the inflation targeting regime on economic growthSuzana Stevanovic0Ivan Milenkovic1Sladjana Paunovic2University of East Sarajevo, Faculty of Business Economics in Bijeljina, Bosnia and HerzegovinaUniversity of Novi Sad, Faculty of Economics in Subotica, the Republic of SerbiaUniversity of East Sarajevo, Faculty of Economics in Pale, Bosnia and HerzegovinaThis research study is focused on the examination of the influence of the introduction and implementation of the monetary Inflation Targeting (IT) regime: the level of the inflation rate and the Gross Domestic Product (GDP) growth rate, as well as inflation and the GDP volatility. Conditional variance is calculated by fitting an empirical Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to an annualized quarterly date for the period from 1993Q1 to 2020Q3, all in order to assess volatility. The results of the regression model showed that there was a positive statistical significance between the instability of inflation and the instability of the growth rate of the GDP in the three analyzed countries (namely in Albania, Turkey and the Republic of Serbia). The result of introducing the IT regime when the GDP growth rate volatility is concerned is statistically significant in Serbia and Turkey and led to reduction in the GDP volatility and stabilization. However, the applied regression model indicated that, in the case of Albania and Romania, the introduction of the IT regime did not have a statistically significant impact on the GDP growth rate volatility. https://horizonti.ekfak.kg.ac.rs/sites/default/files/Casopis/2022_3/EH_2022_3_en_6_SS.pdfinflation targetingeconomic growthgarchregression model |
| spellingShingle | Suzana Stevanovic Ivan Milenkovic Sladjana Paunovic Effects of the implementation of the inflation targeting regime on economic growth Economic Horizons inflation targeting economic growth garch regression model |
| title | Effects of the implementation of the inflation targeting regime on economic growth |
| title_full | Effects of the implementation of the inflation targeting regime on economic growth |
| title_fullStr | Effects of the implementation of the inflation targeting regime on economic growth |
| title_full_unstemmed | Effects of the implementation of the inflation targeting regime on economic growth |
| title_short | Effects of the implementation of the inflation targeting regime on economic growth |
| title_sort | effects of the implementation of the inflation targeting regime on economic growth |
| topic | inflation targeting economic growth garch regression model |
| url | https://horizonti.ekfak.kg.ac.rs/sites/default/files/Casopis/2022_3/EH_2022_3_en_6_SS.pdf |
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