The Unassuming Economist

From a paper by Pulapre Balakrishnan, and M Parameswaran:

“India has seen lower inflation by historical standards for the past 6 years. This has been attributed to the adoption of inflation targeting by the central bank, the Reserve Bank of India in 2016. In particular, it has been asserted that the lower inflation reflects the anchoring of expectations. We evaluate these claims. An econometric investigation indicates that there is no basis to the claim that inflation has been lowered due to the anchoring of expectations. On the other hand, we are able to account for the trajectory of inflation in India after 2016 in terms of an alternative explanation of inflation, namely the structuralist.”

From a paper by Abdullah Gülcü, Erdal Özmen and Fatma Tasdemir:

“This study aims to explore the nonlinear impact of financial integration on income inequality in advanced (AE) and emerging market and developing economies (EMDE). Our panel fixed effect threshold estimation results suggest that international financial integration (IFI) provides a data-driven estimated threshold for the effect of IFI on income inequality. IFI is positively associated with inequality in EMDE, albeit this positive relation diminishes in more financially integrated episodes. In AE, inequality decreases with IFI in less financially integrated episodes. Our empirical findings reveal that the relationship between IFI and inequality is driven by both capital inflows and outflows in AE while it is determined by capital inflows in EMDE. Finally, we investigate whether the impact of IFI on inequality changes with the level of financial development. Our results also suggest that the inequality-increasing effect of IFI is much lower in financially more developed episodes in EMDE. All these findings imply that policies fostering financial development and equitable financial access are crucially important to mitigate the adverse effects of IFI on inequality, especially in EMDE.”

From a paper by Gokcen Ogruk Maz, Sinan Yildirim, Mjellma Carabregu-Vokshi, and But Dedaj:

“This study examines the effect of inflation targeting adoption on stock market capitalization in 39 developing countries from 1995 to 2023. Baseline propensity score matching with two-way fixed effects shows positive but sometimes insignificant effects. Robustness checks excluding the 2008–2009 Global Financial Crisis, hyperinflation episodes, and both combined often yield larger and more significant estimates. To address concerns about staggered policy adoption, we use the Staggered Difference-in-Differences estimator, finding that significance emerges five to ten years after adoption. Results suggest IT supports financial development by enhancing investor confidence and macroeconomic stability, especially in lower-volatility environments.”