This Selected Issues paper for Iceland reports that it faces a considerably less favorable inflation-output variability … of inflation breaching the tolerance band and help to lower the probability of such events occurring. To effectively … target inflation, central banks need to be forward looking, responding early to prospective demand pressures. Having housing …

in Sierra Leone. As economic theory predicts, domestic inflation is found to increase with higher oil prices, higher …This paper examines the determinants of inflation in Sierra Leone using a structural vector autoregression (VAR …) approach to help forecast inflation for operational purposes. Despite data limitations, the paper accurately models inflation …

a freely floating exchange rate, an explicit target for inflation, and a mechanism than ensures a stable government debt … domestic and CPI inflation targeting interest rate rules alongside a 'Structural Surplus Fiscal Rule' as followed recently in … Chile. A comparison with a fixed exchange rate regime is made. We find that domestic inflation targeting is superior to …

Exchange rate-based inflation stabilization (ERBS) policies are associated with a boom-recession cycle in economic … forward-looking pricing behavior without inflation stickiness and attribute the slow decline in inflation to the consumption …-looking components of inflation weigh approximately equally in pricing behavior, and therefore, that inflation is partially sticky. The …

empirical grounds. Two explanations are instead advanced that appear to be consistent both with theory and data. The first …