A large body of empirical work has found that exchange rate movements have only modest effects on inflation. However …

A large body of empirical work has found that exchange rate movements have only modest effects on inflation. However …

This paper provides new insight into the relationship between inflation and consumer price setting by examining a large … data set of Mexican consumer prices covering episodes of both low and high inflation, as well as the transition between the … two. Overall, the economy shares several characteristics with time-dependent models when the annual inflation rate is low …

A large body of empirical work has found that exchange rate movements have only modest effects on inflation. However …

of this margin of adjustment for the response of inflation to shocks. Across a range of empirical exercises, we find …