Is Inflation Targeting Feasible in Poland?

Posted: 27 Sep 2001

See all articles by Peter Christoffersen

Peter Christoffersen

University of Toronto - Rotman School of Management; Copenhagen Business School; Aarhus University - CREATES

Torsten Sløk

Deutsche Bank, New York

Robert Wescott

International Monetary Fund (IMF) - European Department

Abstract

In this paper we analyze whether inflation targeting is feasible in Poland. There are at least three prerequisites for successful inflation targeting: 1) central bank independence, 2) a high degree of central bank accountability, transparency, and communication to the public, and 3) a predictable and stable relationship between inflation and the instruments of monetary policy. While the first two prerequisites are relatively easy to analyze, the third criterion requires formal statistical analysis, which we undertake in this paper. The first two prerequisites for targeting are found to be met in Poland, and the empirical analysis shows some evidence of significant relationships between inflation and monetary instruments in Poland. Hence inflation targeting appears feasible in Poland.

JEL Classification: C32, C53, E31, E52

Suggested Citation

Christoffersen, Peter and Sløk, Torsten Mikkel and Wescott, Robert, Is Inflation Targeting Feasible in Poland?. Economics of Transition, Vol. 9, No. 1, March 2001. Available at SSRN: https://ssrn.com/abstract=264835

Peter Christoffersen (Contact Author)

University of Toronto - Rotman School of Management ( email )

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Toronto, Ontario M5S 3E6 M5P 3C4
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Copenhagen Business School

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Aarhus University - CREATES

School of Economics and Management
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DK-8000 Aarhus C
Denmark

Torsten Mikkel Sløk

Deutsche Bank, New York ( email )

60 Wall Street
Mail Stop: NYC60-1815
New York, NY 10005
United States

Robert Wescott

International Monetary Fund (IMF) - European Department ( email )

700 19th St. NW
Washington, DC 20431
United States

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