TY - UNPD A1 - Fendel, Ralf A1 - Frenkel, Michael A1 - Rülke, Jan-Christoph T1 - Inflation targeting matters! N2 - Proponents of inflation targeting argue that such a strategy directly influences expectation formation processes in financial markets. This paper provides a novel test for the evidence that financial market expectations are formed differently under inflation targeting regimes. Using forecasts for the short-term interest rate, the inflation rate, and output growth for ten emerging markets in Latin-America, central and eastern Europe out of which six economies are inflation targeting economies we estimate expected Taylor-type rules. We find evidence for differences in the expectation formation process in the sense that the well-known Taylor principle fairly holds for countries which adopt an inflation targeting system, while for the other countries it does not. T3 - WHU – Working Paper Series in Economics - WP 08/02 KW - Inflationssteuerung KW - Inflation targeting KW - Taylor-Regel KW - Taylor rule KW - Erwartungsbildung KW - Expectation formation Y1 - 2017 UR - https://opus4.kobv.de/opus4-whu/frontdoor/index/index/docId/511 UR - https://nbn-resolving.org/urn:nbn:de:hbz:992-opus4-5111 PB - WHU - Otto Beisheim School of Management CY - Vallendar ER -