In light of the persistence of moderate inflation in many transition economies, this paper analyzes whether inflation …. Using a new database for 21 countries, the effect of relative price variability on inflation is estimated within a framework … controlling for nominal and real shocks. Money and wage growth were the most important determinants of inflation; relative price …

The paper assesses inflation risks resulting from the convergence of structures of relative prices in Central and … flexibility of domestic nominal prices, the adjustment of relative price structures is likely to lead to higher inflation. The …

factors argued to explain the differences in the trends in core inflation and relative prices in the United Kingdom, the Euro …

, robust measures of central tendency are likely to outperform the mean or standard measures of “core” inflation as indicators … of generalized inflation. The analysis also supports the use of geometric averaging in CPI construction and the targeting … of the geometric mean inflation rate rather than the Laspeyres mean …

When faced with a relative price shock, monetary authorities often aim to contain its second round effects on inflation … while accepting first round effects. We analyze the experience of South Africa and other inflation targeters to explore … whether and when this policy prescription implies changing the monetary policy stance. Inflation targeting central banks …

Union (WAEMU) from 1994 to 2009, this paper provides evidence of the two major channels for real effects of inflation …: inflation uncertainty and relative price variability. In line with theory and most evidence for advanced and emerging market … economies, higher inflation increases inflation uncertainty and relative price variability in all WAEMU countries. However, the …

Why is moving from moderate to low inflation almost always slow or costly? This paper answers this question, based on … the Polish experience. First, reflecting the transition to a market economy, Polish inflation has been marked by … best prospect for moving to low inflation …