New Europe’s central banks are caught between fighting inflation rock and growth-boosting rate cuts hard place quoting Behrooz Gharleghi


Emerging markets central banks switched from tightening into easing mode in February, taking their cue from a dovish turn at the US Federal Reserve and a dollar rally that has run out of steam, for now.

Letting inflation rise in an emerging market will very effectively kill off growth, but strictly targeting inflation in developed markets can actually hurt growth, according to a research paper by Behrooz Gharleghi of Dialogue of Civilisations Research Institute (DOC) entitled “Central bank independence and economic growth,” which sets the border between emerging and developed markets at a GDP per capita (adjusted for purchase price parity) of $9,800.

Behrooz Gharleghi is a senior researcher at DOC Research Institute. Previously he was working as an associate professor at the Faculty of Business and Management, Asia Pacific University of Technology and Innovation, Malaysia, from 2013 to 2018 and he served as the head of the Graduate School of Business at the university for 2017. He has published several articles in the area of financial economics, monetary economics, and business management. He has led on and collaborated in various internal and external research projects, especially from the Malaysian Ministry of Higher Education. Recently he received the ‘Outstanding Researcher in Economics’ award from the Venus International Foundation’s ‘Venus International Research Awards’ in India in October 2017. He holds a PhD in Economics from the National University of Malaysia.