Discussion Paper

No. 2007-25 | July 09, 2007
Is Old Money Better than New? Duration and Monetary Regimes


We compare the duration and performance of different monetary regimes, especially the contrast between countries those that fix exchange rates and those that target inflation. Inflation targeting is a more durable policy; no country has yet been forced to abandon an inflation target, while many have abandoned fixed exchange rates. Indeed, even though inflation targeting began only in 1990, the duration of inflation targeting regimes is at least as long as, or longer than all alternative monetary regimes for comparable countries. Regime duration also matters in monetary policy; older regimes are typically more successful than younger ones in achieving low inflation.


Paper submitted to the special issue "Recent Developments in International Money and Finance" edited by Ronald MacDonald

JEL Classification:

E52, E58



Cite As

Ilian Mihov and Andrew K Rose (2007). Is Old Money Better than New? Duration and Monetary Regimes. Economics Discussion Papers, No 2007-25, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2007-25

Comments and Questions

Anonymous - Referee Report
October 01, 2007 - 07:58

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Ilian Mihov - Response to Referee Report
October 05, 2007 - 10:27

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Anonymous - Referee Report
January 31, 2008 - 12:19

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Anonymous - Response to Referee Report
April 01, 2008 - 08:37

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