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 classifies countries that define their monetary policy framework by an inflation target into full …-fledged inflation targeters, eclectic inflation targeters and inflation targeting lite regimes. This classification is based on … indicators of the clarity and credibility of the commitment to the inflation target. The three regimes can be viewed as …

countries with low pre-crisis inflation and hard pegs have been at least narrowly successful for countries in deeper disarray …) monetary aggregate targeting rarely serves as a coherent framework for floats; informal or full-fledged inflation targeting …

This paper provides some practical advice on establishing initial conditions in support of an inflation …-targeting monetary framework. These conditions are divided into four areas: a mandate in support of an inflation objective and …

Inflation targeting lite (ITL) countries float their exchange rate and announce an inflation target, but are not able … to maintain the inflation target as the foremost policy objective. This paper identifies 19 emerging market countries as … practitioners of ITL. They seem to focus mainly on bringing inflation into the single digits and maintaining financial stability …