Is Poland Ready for Inflation Targeting?

31 Pages Posted: 12 Feb 2006

See all articles by Peter Christoffersen

Peter Christoffersen

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

Robert Wescott

International Monetary Fund (IMF) - European Department

Date Written: March 1999

Abstract

Monetary policymakers in advanced transition economies such as Poland are increasingly interested in how inflation responds to changes in policy instruments and other economic forces. In this paper, measures of underlying CPI inflation based upon optimal trimming concepts are developed. The sensitivity of these CPI measures to changes in a set of 25 policy and economic variables is then studied via Granger causality tests and impulse responses and a multivariate model of CPI inflation developed. The results show that a core set of variables characterize one-period-ahead underlying inflation moderately well but that statistical linkages are not yet robust.

Keywords: leading indicators, inflation, monetary policy, inflation targeting, robust statistics, administered prices

JEL Classification: C32, C53, E31, E52

Suggested Citation

Christoffersen, Peter and Wescott, Robert, Is Poland Ready for Inflation Targeting? (March 1999). IMF Working Paper, Vol. , pp. 1-31, 1999. Available at SSRN: https://ssrn.com/abstract=880568

Peter Christoffersen (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5P 3C4
Canada
416-946-5511 (Phone)

Copenhagen Business School

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Aarhus University - CREATES

School of Economics and Management
Building 1322, Bartholins Alle 10
DK-8000 Aarhus C
Denmark

Robert Wescott

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

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

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