This is the third chapter of a forthcoming monograph entitled ""On Implementing Full-Fledged Inflation-Targeting Regimes: Saying What You Do and Doing What You Say."" It examines a number of elements in the design of an inflation-targeting framework. These include the definition of the target...

Monetary policy in Yemen is largely rudimentary and ad hoc in nature. The Central Bank of Yemen's (CBY) approach has been based on discretionary targeting of broad money without any clear target to anchor inflation expectations. This paper argues in favor of a new formal monetary policy...

This paper provides an overview of inflation targeting frameworks and macroeconomic performance under inflation targeting. Inflation targeting frameworks are generally quite similar across countries, and a broad consensus has developed in favor of ""flexible"" inflation targeting. The evidence...

This is the fourth chapter of a forthcoming monograph entitled ""On Implementing Full-Fledged Inflation- Targeting Regimes: Saying What You Do and Doing What You Say."" It examines a number of issues related to transparency and accountability in an inflation-targeting regime. It first looks at...

This paper lays out a structural model that incorporates key features of monetary transmission in typical emerging-market economies, including a bank-credit channel and the role of external debt accumulation on country risk premia and exchange rate dynamics. We use an SVAR representation of the...

Inflation-targeting central banks have a respectable track record at explaining their policy actions and corresponding inflation outturns. Using a simple forward-looking policy rule and an assessment of inflation reports, we provide a new methodology for the empirical evaluation of consistency...

This paper presents a model for Inflation Targeting under imperfect policy credibility. It modifies the conventional model in three ways: an endogenous policy credibility process, by which monetary policy can gain or lose credibility over time; non-linearities in the inflation equation and in the...

After a long period of global price stability, in 2008 inflation increased sharply following unprecedented increases in the price of oil and other commodities, notably food. Although inflation remained lower and growth higher in inflation targeting countries than elsewhere, almost everywhere...

Intro -- Contents -- I. INTRODUCTION AND OVERVIEW -- II. LOW INFLATION OBJECTIVE AS NOMINAL ANCHOR -- III. PRINCIPLES OF MONETARY POLICY GEARED TOWARD TARGETING INFLATION -- IV. INSTITUTIONAL SUPPORT FOR INDEPENDENT MONETARY POLICY -- V. MONETARY AND BANKING INSTITUTIONS IN CHINA -- VI....