[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-40096-en":3,"doc-seo-40096-105":30,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":13,"seo_description":14,"update_tm":28,"read_time":29},40096,1099513958607,"Jiven","https://ap-avatar.wpscdn.com/avatar/100002390cf8733938c?x-image-process=image/resize,m_fixed,w_180,h_180&k=1778829742770036399",8,"Research & Report","Inflation Targeting Effectiveness: Lessons From Global Financial Crisis and COVID-19 Pandemic","This paper examines how inflation targeting (IT) shapes macroeconomic performance across 24 Asian economies using macroeconomic variables from 2001 to 2022. The analysis evaluates IT effects separately during the global financial crisis (GFC) and the COVID-19 pandemic. Estimation relies on propensity score matching, difference-in-differences, and panel-corrected standard error methods. Results indicate IT significantly affects inflation level and inflation volatility during the GFC, while unemployment effects remain statistically insignificant. During COVID-19, IT influences inflation and unemployment, but not inflation volatility, informing policy for stable inflation via continuous adaptation and targeted interventions.","DOI: 10.1002/ijfe.3018  \nRESE ARCH ARTICL E  \nIs inflation targeting effective? Lessons from global financial crisis and COVID-19 pandemic  \nChandan Sethi  | Bibhuti Ranjan Mishra  \nDepartment of Humanities and Social Sciences, Visvesvaraya National Institute of Technology (VNIT), Nagpur, Maharashtra, India  \nCorrespondence  \nChandan Sethi, Department of Humanities and Social Sciences, Visvesvaraya National Institute of Technology (VNIT), Nagpur, Maharashtra 440010, India.  \nEmail: [chandan.nit2021@gmail.com](chandan.nit2021@gmail.com)  \n1 | INTRODUCTION  \nAbstract  \nThis paper explores the influence of inflation targeting (IT) policy on macroeconomic performance in 24 Asian economies by taking a wide range of macroeconomic variables from 2001 to 2022 . Specifically, the study seeks to evaluate the influence of IT on macroeconomic performance during the global financial crisis (GFC) and the COVID-19 pandemic periods separately. The empirical analysis comprises three approaches: propensity score matching, difference-in-differences, and panel-corrected standard error methods. The empirical investigation reveals that IT significantly impacts inflation and its volatility during the GFC. In contrast, the effect on the unemployment rate isnot statistically significant. Further, IT statistically influences the inflation and unemployment rates throughout the COVID-19 pandemic. In contrast, its impact on inflation volatility during the COVID-19 pandemic is not evident. Our results have significant policy implications for the Asian economies. It may be suggested that low-income countries could benefit from implementing IT policy as a tool to ensure stable inflation. However, there is a need for continuous policy adaptation and targeted interventions to address evolving economic challenges, especially in situations like crises.  \nKEYWOR DS  \nAsian economies, COVID-19 pandemic, difference-in-differences, global financial crisis, inflation targeting, panel-corrected standard error, propensity score matching  \nFinancial Crisis (1st global recession in 2007) and the COVID-19 pandemic (2nd global recession in 2020) . Gali  \nMonetary authorities have embraced inflation targeting (IT) as a strategy to manage overall price levels and stimulate economic growth. Inflation targeting is based on the belief that long-term economic growth is best achieved by maintaining economic stability, which could be attained by controlling inflation. IT can be contrasted to other possible policy goals of the central bank including the exchange rate, unemployment rate, interest rate, and national income. After adopting IT, the global economy experienced only two types of global crises that challenged conventional monetary policy: the Global  \n(1992) documented that recessions often involve a negative aggregate deflationary demand shock and a negative aggregate inflationary supply shock. In most cases, however, one of the two shocks dominates the other. For instance, the primary source of the 1973–1975 recession was the significant supply shock resulting from the OPEC oil embargo. Similarly, most economists agree that the Great Recession of 2007 was predominantly a large negative demand shock caused by the falling house and stock prices (Mian & Sufi, 2014; Pichler & Farmer, 2022) . In contrast, multiple studies have now shown Covid-19  \nInt J Fin Econ. 2024;1–[22. wileyonlinelibrary.com/journal/ijfe](22. wileyonlinelibrary.com/journal/ijfe)  \n© 2024 John Wiley & Sons Ltd.  \n1  \npandemic to be a rare example of large and nearly simultaneous supply and demand shocks to the economy (Baqaee & Farhi, 2022; Bekaert et al., 2020; Brinca et al., 2020; Chetty et al., 2020; Guerrieri et al., 2022; Pichler et al., 2021; Pichler & Farmer, 2022) .  \nThe consequences of the crisis of 2007 were a fall in investment due to a rise in the rate of interest, a rise in unemployment, and a massive drop in the gross domestic product (GDP) growth rate. The International Monetary Fund (201","cbCaiaIcmLjEu9nZ","https://ap.wps.com/l/cbCaiaIcmLjEu9nZ","pdf",1565720,3,1,22,"English","en",105,"# Introduction\n## Research focus and policy question\n## Economic crises context (GFC and COVID-19)\n## Motivation and background on inflation targeting\n## Empirical approach and key findings","[{\"question\":\"What is the main research question of the study?\",\"answer\":\"The study asks how inflation targeting (IT) affects macroeconomic performance in 24 Asian economies, with attention to different crisis periods.\"},{\"question\":\"Which crisis periods are analyzed separately?\",\"answer\":\"The paper evaluates IT effects separately during the global financial crisis (GFC) and the COVID-19 pandemic.\"},{\"question\":\"What methods are used in the empirical analysis?\",\"answer\":\"The empirical analysis uses propensity score matching, difference-in-differences, and panel-corrected standard error methods.\"}]",1783303193,55,{"code":4,"msg":31,"data":32},"ok",{"site_id":25,"language":24,"slug":33,"title":13,"keywords":34,"description":14,"schema_data":35,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":28},"inflation-targeting-effectiveness-lessons-from-global-financial-crisis-and-covid-19-pandemic","",{"@graph":36,"@context":85},[37,53,68],{"@type":38,"itemListElement":39},"BreadcrumbList",[40,44,48,50],{"item":41,"name":42,"@type":43,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":45,"name":46,"@type":43,"position":47},"https://docshare.wps.com/document/","Document",2,{"item":49,"name":12,"@type":43,"position":20},"https://docshare.wps.com/document/research-report/",{"item":51,"name":13,"@type":43,"position":52},"https://docshare.wps.com/document/inflation-targeting-effectiveness-lessons-from-global-financial-crisis-and-covid-19-pandemic/40096/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":24,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":41,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-14","2026-07-06",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What is the main research question of the study?","Question",{"text":75,"@type":76},"The study asks how inflation targeting (IT) affects macroeconomic performance in 24 Asian economies, with attention to different crisis periods.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"Which crisis periods are analyzed separately?",{"text":80,"@type":76},"The paper evaluates IT effects separately during the global financial crisis (GFC) and the COVID-19 pandemic.",{"name":82,"@type":73,"acceptedAnswer":83},"What methods are used in the empirical analysis?",{"text":84,"@type":76},"The empirical analysis uses propensity score matching, difference-in-differences, and panel-corrected standard error methods.","https://schema.org",{"og:url":51,"og:type":87,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":89,"canonical":51},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":92},[93,97,101,105,110,115,120,123,128,131,135],{"id":21,"doc_module":4,"doc_module_name":46,"category_name":94,"show_sort_weight":95,"slug":96},"Story & Novel",90,"story-novel",{"id":47,"doc_module":4,"doc_module_name":46,"category_name":98,"show_sort_weight":99,"slug":100},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":46,"category_name":102,"show_sort_weight":103,"slug":104},"Exam",70,"exam",{"id":106,"doc_module":4,"doc_module_name":46,"category_name":107,"show_sort_weight":108,"slug":109},5,"Comic",60,"comic",{"id":111,"doc_module":4,"doc_module_name":46,"category_name":112,"show_sort_weight":113,"slug":114},6,"Technology",50,"technology",{"id":116,"doc_module":4,"doc_module_name":46,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":46,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":46,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":46,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":46,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":46,"category_name":137,"show_sort_weight":106,"slug":138},19,"General","general"]