over the past 15 years, explicit inflation targeting (IT) has been adopted by an increasing number of central banks, and a substantial body of literature has emphasized the advantages of this approach as a framework for monetary policy Nevertheless, empirical analysis has yielded little evidence of any macroeconomic effects of IT. For example, the landmark study of Bernanke, Laubach, Mishkin, and Posen (1999) concluded that the first few countries to adopt IT did not experience any short-run gains in lower output costs of disinflation. Most recently, Ball and Sheridan (forthcoming) considered a wide range of macroeconomic indicators for Organisation for Economic Cooperation and Development (OECD) economies and found no statistically significant differences between the IT and non-IT countries