In this paper, we examine whether industry-level forecasts of CPI and PPI inflation can be improved using the … a two or three equation system involving CPI and PPI inflation where the effects of the exchange rate and import prices … time series models, as well as with a model that, in addition, includes standard control variables for inflation, like …

country or a panel of countries, and use the econometric estimation to understand the evolution of the exchange rate and …

of inflation in an open economy. In contrast with the closed economy literature, when policy is set non-cooperatively in … goes to zero -- is not a general result. An optimizing monetary authority faces an incentive to use the inflation tax to … gain a "beggar-thy-neighbor" advantage over the terms of trade. Strategic use of the inflation tax, however, results in a …

inflation) deliver global equilibrium uniqueness in small open economies? By studying the local and global dynamics of a … is that the same rule will lead to cycles and chaotic dynamics around the inflation target. In contrast for forward … stability properties. This can be achieved by targeting a high enough inflation level and by being “not too aggressive†with …

. This entails private agents and the central bank updating their beliefs about the laws of motion of inflation, the output …

We compare the performance of a currency board, inflation targeting, and dollarization in a small, open developing … preferable to the versions of inflation targeting we consider and a currency board because it removes currency premium volatility …

) estimated two models: a bivariate model of productivity and hours and a five-variable model adding money, inflation, and … a four-variable structural VAR for the United States with labor productivity, labor hours, the real interest rate, and … inflation. Using the Gali (1999) identification, they find that during the Volcker-Greenspan (VG) era the Fed's response to the …