Original scientific paper

https://doi.org/10.1080/1331677X.2020.1820360

Macroeconomic performance of countries across monetary policy regimes from 2000 to 2017

Maciej Ryczkowski orcid.org/0000-0003-2156-6823
Marek Ręklewsk

Abstract

The goal of the article is to compare macroeconomic performance
of 27 advanced and emerging OECD countries through the lens
of their monetary policy frameworks. We find no advantage of
the euro area countries and countries whose central banks follow
a dual mandate in inflation and output stabilisation as compared
to full-fledged inflation targeters including strongly inflationaverse central banks. The study contributes to the unresolved discussion on optimal monetary policy after the Great Recession.
The novelty relies on employing a synthetic median-based measure adjusted for initial macroeconomic conditions. The failure to
account for the initial conditions leads to underestimation of performance of countries with an originally unfavourable economic
situation. We verify the results with panel data models using
macroeconomic variables of key importance for monetary policy
after the Great Recession. Overall, the study suggests that assigning a special role to money or output in a monetary policy strategy is not required for successful macroeconomic performance.

Keywords

inflation targeting (I.T.); dual mandate; monetary policy regimes; macroeconomic performance

Hrčak ID:

301225

URI

https://hrcak.srce.hr/301225

Publication date:

31.12.2021.

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