A major challenge for monetary policy has been predicting how exchange rate movements will impact inflation. We propose …

. Previous literature has highlighted the role of an economy's "structure" - such as its inflation volatility, inflation rate …, forecasts predicting how a given exchange rate movement will impact inflation at a specific point in time should take into …

The United Kingdom is a highly open economy, and has a monetary policy strategy of targeting inflation in consumer … prices. In this paper, we look at the evidence from the UK on inflation behaviour, and examine the propositions from several … theoretical models about inflation dynamics in an open economy, focussing in particular on the hypothesised connections between …