Alp, Harun; Elekdag, Selim - International Monetary Fund (IMF) - 2012
) let the exchange rate depreciate and cut interest rates (to, for example, a historically low level of 1¼ percent by mid … seeks to address the following question: if an inflation targeting framework underpinned by a flexible exchange rate regime … simulations based on an estimated structural model indicate that countercyclical monetary policy and exchange rate flexibility …