This paper addresses the question of why inflation has not yet converged to price stability in Central America and the … that all central banks raise interest rates to curtail inflation but only some of them increase it sufficiently to … effectively tackle inflation pressures. It also shows that some central banks care simultaneously about exchange rate stability …

shocks this model generates the empirically observed slow (inertial) and prolonged (persistent) reaction of the inflation … shocks mostly through a change in the long-run or inflation updating component of their pricing policies. With staggered … pricing policies there is a time lag before this is reflected in aggregate inflation. …

How should a central bank organize itself to produce the best possible inflation forecast? This paper discusses … elements for building a comprehensive platform for an inflation forecasting framework. It describes the exercise of forecasting … inflation as a production process, which induces a strict discipline concerning data management, information gathering, the use …

considers inflation targeting in a small open economy. This economy is characterized by imperfect competition and short … inflation targeting on output and inflation volatility depend crucially on the exchange rate regime and the inflation index … nominal shocks the reverse is true. Second, domestically generated inflation targeting is preferable to CPI inflation …

The shift to inflation targeting has contributed to the relatively low inflation observed in some emerging market … impact on real and financial sectors, it does not preclude the use of inflation targeting as a policy regime. …