linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due … interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has emerged is … inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity …

This paper discusses the acceleration of inflation in Brazil. In the early 1980s, the Brazilian inflation rate … Cruzado Plan failed to stop inflation because of an extremely loose monetary policy coupled with a lack of fiscal austerity …. Repeated price controls have increased the variability of inflation. More recently, the decline in tax collections and the …

Inflation persists at moderate rates of 15-30 percent in all the countries that successfully reduced triple digit … inflations in the 1980s. Several other countries, for example Colombia, have experienced moderate inflation for prolonged periods …. In this paper we first set out theories of persistent inflation, which can be classified into those emphasizing …

inflation and inflation expectations. We derive an interest rate rule and show empirically that it approximates the way the … persistence of policy rates as well as a strong response to deviations of inflation from target and to the activity growth gap. In …

raising their interest rate instrument more than one-for-one in response to higher inflation---to an environment in which …

, inertial inflation and the basics of monetary reform. We also review the actual stabilization experience in Argentina, Brazil …In 1985-86 Argentina, Brazil and Israel initiated programs of stabilization after episodes of high and sharply … accelerating inflation. Among the key features of each stabilization program were the use of wage- price controls, a fixed exchange …

Evaluating inflation-targeting monetary policy is more complicated than checking whether inflation has been on target …, because inflation control is imperfect and flexible inflation targeting means that deviations from target may be deliberate in … variability of the inflation-gap and output-gap forecasts can be used to evaluate policy ex ante, that is, taking into account the …

We analyze the degree to which the growing importance of sovereign wealth funds [SWFs] and the diffusion of inflation … Recession and the post-Great Recession period. Inflation targeting (IT) policy matters: IT countries give up the use of reserves …, their monetary authorities place large weights on output gaps; while inflation gains importance for IT countries. Countries …

actions are explained solely by its forecasts of inflation and real activity. Finally, we explore the possibility of …