This paper explores the role of exchange rates in emerging economies with inflation-targeting regimes, an issue that … has become especially germane during the current episode of financial turmoil and volatile capital flows. Under inflation … targeting, the interest rate is the main monetary policy tool for influencing activity and inflation, and there is little …

This paper provides an overview of inflation targeting frameworks and macroeconomic performance under inflation … targeting. Inflation targeting frameworks are generally quite similar across countries, and a broad consensus has developed in … favor of "flexible" inflation targeting. The evidence shows that, although inflation target ranges are missed frequently in …

, the effects on inflation and output volatility in the event of demand and cost-push shocks are minimal. Financially …

This paper examines the international experience with full-fledged inflation targeting monetary regimes. Stylized facts … are brought together from a review of the institutional elements of inflation targeting frameworks, a comparison of actual … and targeted inflation outcomes, and case studies of large inflation target misses. Inflation targets are missed about 40 …

, robust measures of central tendency are likely to outperform the mean or standard measures of “core” inflation as indicators … of generalized inflation. The analysis also supports the use of geometric averaging in CPI construction and the targeting … of the geometric mean inflation rate rather than the Laspeyres mean. …

Transparency is a central element in most aspects of the design and operation of inflation targeting regimes. This … paper focuses on three elements of inflation targeting most closely associated with transparency: (i) the institutional … arrangements supporting inflation targeting; (ii) the specification of the inflation target; and (iii) the central bank's policy …