## An Investigation of Output Variance Before and During Inflation Targeting

_IMF Working Papers, December 1, 2001_

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## Bibliographic details
- Authors: Francisco d Nadal De Simone
- Published: December 1, 2001
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451875041.001

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### Summary and Main Findings
- Research question: Estimates whether conditional output variance changed in a sample of 12 countries following the generalized reduction in inflation variance in the 1990s.
- Principal finding: With the possible exception of Canada, there is no evidence of an increase in output variance.
- Country-specific outcomes reported:
  - Canada: possible exception (implying potential increase in output variance).
  - Korea: output variance has not changed.
  - Singapore: output variance has not changed.
  - Australia: output variance has fallen.
  - New Zealand: output variance has fallen.

### Context and Motivation
- Background: Since Taylor estimated a trade-off between inflation and output variance, a common view is that keeping inflation “too low and stable” may result in relatively larger output fluctuations.
- Trigger for study: Generalized reduction in inflation variance in the 1990s rekindled concerns about an inflation-output variance trade-off.

### Scope and Approach
- Sample size: 12 countries.
- Study type: IMF Working Paper (Working Paper No. 2001/215).
- Length: 27 pages.
- Publication details:
  - Author: Francisco d Nadal De Simone
  - Date: December 1, 2001
  - Volume: 2001
  - Issue: 215
  - DOI: https://doi.org/10.5089/9781451875041.001
  - Stock No: WPIEA2152001
  - ISBN: 9781451875041
  - ISSN: 1018-5941

### Subjects and Keywords (as provided)
- Subjects: Business cycles, Economic growth, Inflation, Inflation targeting, Monetary policy, Monetary policy frameworks, Potential output, Prices, Production
- Keywords: Australia and New Zealand, Business cycles, Inflation, inflation targeting, inflation targeting framework, inflation variance, inflation-targeting regime, Markov-switching, Monetary policy frameworks, output trade-off, output variance, output variance trade-off, Potential output, WP

*IMF Working Paper No. 2001/215 — "An Investigation of Output Variance Before and During Inflation Targeting" by Francisco d Nadal De Simone (December 1, 2001).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/an-investigation-of-output-variance-before-and-during-inflation-targeting-15357_