Journal of Policy Modeling 44(3) Macroeconomic performance of inflation targeting in European and Asian emerging economies info:eu-repo/semantics/article Keywords: Inflation targeting; Monetary policy; Emerging economies; Dynamic panel model; Propensity score matching 2022 https://phaidrabg.bg.ac.rs/o:29638 doi:10.1016/j.jpolmod.2022.06.002 ISSN: 0161-8938 Arsić, Milojko Mladenović, Zorica Nojković, Aleksandra Abstract The macroeconomic performance resulting from adopting an inflation targeting policy in emerging economies of Europe and Central Asia are examined. The research includes 26 countries in the period 1997–2019, with a special focus on the period 2008–2019. Our econometric analysis consists of two approaches: dynamic panel modeling and propensity score matching. The results suggest that macroeconomic performance has improved due to the inflation targeting monetary framework. We find that a policy of inflation targeting has been effective in reducing the inflation rate, inflation volatility, and GDP volatility. The results are particularly robust for the subperiod that started in 2008. Econometric results suggest that inflation targeting policy did not affect inflation persistence or GDP growth. Our results suggest that inflation targeting improves the macroeconomic performance of developing countries even when they only partially meet the standard requirements for its implementation. eng All rights reserved application/pdf 916023 bytes