Does inflation targeting really matter? Doubly robust estimation

This study examines the performance stability of firms in inflation-targeting countries before and after the 2008 global financial crisis. We use the propensity score method to analyse and compare firms in inflation-targeting and non-inflation-targeting countries. The estimation results show that firms in inflation-targeting countries underperform in response to shocks. Our results suggest that inflation targeting does not necessarily mitigate an economy's response to business cycle fluctuations.