This paper explores the impact of the exchange rate regime on inflation and output in the Central and Eastern European … exchange rate stability have a better explanatory power than the de jure measures in the inflation and growth equations. For … the whole observation period the estimations reveal a significant impact of exchange rate stability on low inflation as …

experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the “standard model” suffice to explain the broad contours of macroeconomic outcomes in …

, inflation targeting remains robustly optimal in non-U.S. economies. The implementation of this non-cooperative policy results in … inflation targeting to take advantage of its effects on global product and asset markets, generating negative spillovers on the …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …