This paper explores the implications of different strategies for financing the fiscal cost of twin crises for inflation … crises; (iii) a portion of the government's liabilities are not indexed to inflation; and (iv) there are nontradable goods … account for the high rates of devaluation and moderate rates of inflation often observed in the wake of currency crises. We …

Bank of Japan policy? …

intervention has not been available for Japan. This paper investigates the effectiveness of intervention using recently published … newswires). To some extent intervention might be a useful policy instrument during the zero-interest rate policy period in Japan …

delay, the higher inflation will be under flexible exchange rates …

This paper documents two facts about countries with floating exchange rates where monetary policy controls inflation … horizon. Second, the real exchange rate is virtually uncorrelated with future inflation rates both in the short run and in the …