with output at its potentialand constant inflation. An important implication of our analysis is that increasedcompetition …-its subsequentand protracted decline accompanied by lower inflation. The analysis has importantimplications for monetary policy and the …

We provide a theory of the limits to monetary policy independence in open economies arising from the interaction … between capital flows and domestic collateral constraints. The key feature of our theory is the existence of an 'Expansionary …

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 …

output, and the evidence appears to go their way. To reconcile theory and reality, we extend the set of assets included in …

above the average of emerging market inflation targeting regimes. The adoption of an inflation-targeting regime and better … economic fundamentals (reduction in inflation volatility and improvements in the fiscal and external positions) has helped … and inflation inertia generated by still pervasive indexation practices …