The degree to which domestic prices adjust to exchange rate movements is key to understanding inflation dynamics, and … hence to guiding monetary policy. However, the exchange rate pass-through to inflation varies considerably across countries … countries that combine flexible exchange rate regimes and credible inflation targets. Finally, the empirical results suggest …

puzzle, which refers to anomalous behavior of inflation to a monetary shock. Unlike the existing studies, we consider the …, we use two alternative measures of inflation. Calibration of our medium scale model, using plausible parameter values …, reveals that irrespective of how the inflation rate is measured and the policy rule used by the central bank, the puzzle fades …

puzzle, which refers to anomalous behavior of inflation to a monetary shock. Unlike the existing studies, we consider the …, we use two alternative measures of inflation. Calibration of our medium scale model, using plausible parameter values …, reveals that irrespective of how the inflation rate is measured and the policy rule used by the central bank, the puzzle fades …