This paper analyzes the relationship between exchange rates, inflation and disinflation in Latin America. The analysis … inflation. The second issue addressed in the paper refers to the use of a nominal exchange rate anchor to reduce inflation. Data …

This paper discusses the regressive nature of the inflation tax and she limited extent of its impact on those … individuals below the poverty line. It also argues that inflation affects poverty mainly through its impact on real wages: the … empirical evidence shows that wages increase more slowly than prices during episodes of rising inflation in Latin America …

dramatic consequences, at least in the very short-run. Within a few months inflation was down to 1-2 percent a month, foreign …

policy statements is likely to produce worse outcomes for output and inflation fluctuations, both because it will lead to … credibility of the central bank. In contrast, conducting monetary policy with a flexible inflation target rule is likely to … produce better outcomes. A flexible inflation target rule also allows the monetary authorities to effectively communicate to …

High and persistent inflation has been one of the distinguishing macroeconomic characteristics of many developing … countries since the end of World War II. Countries afflicted by chronic inflation, however, have not taken their fate lightly … to inflation stabilization policies and balance of payment crises in developing countries …