Adler, Gustavo; Chang, Kyun Suk; Wang, Zijiao - 2020
attention to its use under inflation targeting (IT). We find significant differences between advanced and emerging market … find no evidence of FXI being used in response to inflation developments, while there is strong evidence that FXI responds … to exchange rates, indicating that IT central banks in EMDEs have dual inflation/exchange rate objectives. We also find a …