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 …

-linear features. In order to do so, we develop a Markov switching model and apply it to a sample of low and high inflation countries …. The empirical analysis shows that for the high inflation countries the relationship between news in the fundamentals and … the exchange rate changes is stable and significant. This is not the case, however, for the low inflation countries, where …

With fixed costs of price and quantity adjustment, output effects of inflation depend on the elasticity of the firm …'s marginal real revenue. If the elasticity always exceeds minus unity, then output decreases with inflation, while if the … elasticity is always less than minus unity, then output increases with inflation. In the special case that the elasticity always …

the traditional results on the impact of inflation. In particular, recent findings suggest that quantity-adjustment costs … may remove the linkage between output and inflation. We show that this is not the case when inflation is anticipated. On …

current operating procedures and make monetary policies more effective in fighting inflation. …

countries with high inflation, the output effects of monetary policies are significantly reduced. A lot of variation in the …