| Abstract: |
Abstract This thesis investigates the effect of inflation targeting policy on economic performance of selected countries, which are Czech Republic, Sweden and Chile. We use synthetic control method (SCM) as a tool to construct matching countries from control groups, which were selected on the grounds of similar pre-treatment development or other resemblances. The results show significant improvement in GDP per capita growth after imposing the policy in comparison with our synthetic versions of those countries. JEL Classification E 31, E37, E52, E58 Keywords Inflation targeting, monetary policy, inflation, Synthetic control method |
