Benes, Jaromir; Berg, Andrew; Portillo, Rafael; Vavra, David - In: Open Economies Review 26 (2015) 1, pp. 81-108
We study a wide range of hybrid inflation–targeting (IT) and managed exchange rate regimes, analyzing their implications for inflation, output and the exchange rate. To this end, we develop an open economy new–Keynesian model featuring sterilized interventions as an additional central bank...