This paper examines the international experience with full-fledged inflation targeting monetary regimes. Stylized facts are brought together from a review of the institutional elements of inflation targeting frameworks, a comparison of actual and targeted inflation outcomes, and case studies of...

This paper explores the role of exchange rates in emerging economies with inflation-targeting regimes, an issue that has become especially germane during the current episode of financial turmoil and volatile capital flows. Under inflation targeting, the interest rate is the main monetary policy...

A DSGE model is used to examine whether including the exchange rate in the central bank’s policy rule can improve economic performance. Smoothing the exchange rate helps both financially-robust economies and financially-vulnerable emerging economies in handling risk premium shocks and, given a...

This article discusses further research on alternative measures of underlying inflation and the Bank's decision to begin publishing a weighted median measure of inflation excluding credit charges.

A description of the main features of Consumer Price Index (CPI) inflation in the June 1995 quarter

A graphical approach to explain why it is more appropriate for the Bank to base monetary policy on a measure of underlying inflation rather than on the official or headline, measure of inflation.

This paper has five sections. Section I covers the introduction while Section II reviews the concept of core inflation. Section III discusses the uses of core inflation in policy formulation, policy accountability and forecasting and uses these considerations in setting out desirable properties...

This paper develops a stochastically-based method of measuring core inflation, extending earlier research by Bryan and Cecchetti (1993) and Roger (1995).