Adler, Gustavo; Chang, Kyun Suk; Wang, Zijiao - In: Latin American journal of central banking : LAJCB 2 (2021) 4, pp. 1-25
attention to its use under inflation targeting (IT). We find significant differences between advanced (AEs) and emerging market … of FXI being used in response to inflation developments, while strong evidence exists that FXI responds to exchange rate … movements, indicating that IT central banks in EMEs have dual inflation/exchange-rate objectives. We also find a higher …