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I reevaluate the treatment effect of inflation targeting (IT) in industrial economies that adopted this regime in the 1990s through dynamic panel regressions to show that IT had significant enhancing effects on realized inflation and GDP growth. I also refine the propensity score matching of Lin and Ye (2007) and Ball and Sheridan’s (2005) cross-section regressions to show that their conclusion of IT irrelevance can be overturned. By analyzing other samples that extend theirs, I provide further evidence of the pioneering IT systems good performance among developed countries.

Inflation targeting; Inflation; Inflation-output growth short-run tradeoff