Many central banks in emerging and advanced economies have adopted an inflation-forecast targeting (IFT) approach to … monetary policy, in order to successfully establish a stable, low-inflation environment. To support policy making, each has …-fledged inflation targeting …

We estimate the dynamic effects of changes in retail energy prices on inflation using a novel monthly database …, covering 110 countries over 2000:M1 to 2016:M6. We find that (i) inflation responds positively to retail energy price shocks … response of inflation to these shocks owing to differences in factors related to labor market flexibility, energy intensity …

empirical finding when estimated with different expectation formation processes. When inflation becomes de-anchored and … expectations drift, we can observe high inflation even with a mildly positive output gap in response to cost-push shocks. The … normal times to predict the cost of reining in inflation. Our optimal policy exercises prescribe early monetary policy …

Inflation and unemployment rate were largely disconnected between 2000 and 2019 in advanced economies. We decompose … core inflation into two parts based on the cyclical sensitivity of CPI components and document several salient facts: (i … inflation and unemployment rate. The approach has potential to help understand forces shaping price pressures during the …

This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the … findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad … retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing …

Standard New Keynesian (NK) models feature an optimal inflation target well below two percent, limited welfare losses …-run Phillips curve between inflation and unemployment and a trade-off between price distortions and output hysteresis that change … the welfare-maximizing inflation level. For a plausible set of parameters, the optimal inflation target is in excess of …

dynamics of the economy, the design ofmonetary policy, and the properties of inflation at different levels of development. A … calibratedversion of the model encompasses both rich and poor countries and broadly replicates theproperties of inflation across the … nearcomplete)stabilization of sticky-price non-food inflation, despite the presence of a foodsubsistencethreshold. Subsistence …

explain the observed exchange rate and inflation variability as well as the fact that the regression and VAR estimates tend to …

This paper analyses inflation dynamics in the Central African Economic and Monetary Community (CEMAC) using a …. Imported commodity price shocks are significant in explaining inflation in the region. Governments are another driving force of … inflation dynamics mainly through controlled prices and the role of capital expenditure in domestic activity. In most CEMAC …