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Does Inflation Targeting Reduce Pass-Through Effect?

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Abstract (2. Language): 
There is a common academic opinion that the dollarization caused by the increasing inflation rates, particularly in the emerging market economies since 1990s also increases the pass-through effects in such countries. Yet another opinion suggests that the decrease in the inflation rates thanks to inflation targeting causes a reversal in the dollarization and a decrease in the pass-through effect. The aim of this study is to evaluate both opinions for the selected emerging market economies. Six different emerging market economies have been tested via Panel VAR approach. The findings of the study seem to support the latter.
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