model embodies the key principle that, in an inflation-targeting framework, the role of monetary policy is to provide an … anchor for inflation and inflation expectations. The development and calibration of this model is an ongoing process. …

changes have swifter effects on output and inflation compared to advanced economies and that exchange rate dynamics plays a … key role in this connection. Importantly, the response of inflation to monetary policy shocks has grown stronger and the … output-inflation tradeoff improved since the introduction of inflation targeting. …

high interest rate levels in the aftermath of Brazil's 1994 inflation stabilization. However, since the adoption in 1999 of … inflation targeting and floating exchange rates, Brazil's real interest rates are gradually converging to the model's predicted …

This paper proposes a new method of estimating the Taylor rule with a time-varying implicit inflation target and a time …-varying natural rate of interest. The inflation target and the natural rate are modeled as random walks and are estimated using …

toward an increase in expected inflation falls as debts increase beyond a certain threshold level. A debt …-constrained interest rate rule and the threshold level of debt are jointly estimated for Canada during the first decade of its inflation … loose than what inflation indicators called for. …

above the average of emerging market inflation targeting regimes. The adoption of an inflation-targeting regime and better … economic fundamentals (reduction in inflation volatility and improvements in the fiscal and external positions) has helped … and inflation inertia generated by still pervasive indexation practices. …

In this paper we study the dynamics of inflation in Macedonia, provide three forecasting tools and draw some policy … conclusions from the quantitative results. We explore three forecasting methods for inflation. We use a Dynamic Factor Model (DFM … New Keynesian Phillips Curve (NKPC) for a more structural model of inflation. The NKPC shows a significant effect of …

Is aggressive monetary policy response to inflation feasible in countries that suffer from fiscal dominance? We find … principle can produce unique equilibria. However, resulting inflation is extremely volatile and zero lower bound on nominal … interest rates is frequently violated. Within the set of feasible rules the optimal response to inflation is highly negative …