The paper presents a version of the exchange-rate-regime model of inflation. Quarterly data from Mexico from 1946 to 1995 are used to estimate and test a simultaneous-equation model for wage inflation, price inflation and industrial production, taking account of the Lucas critique and the...

We present a version of the exchange-rate regime model of inflation. We then use quarterly data from Mexico during 1946Q1-1995Q1 to test and estimate a simultaneous equation model for wage inflation, price inflation and industrial production. In doing so, we respect the Lucas critique and take...

This paper estimates a threshold monetary policy rule model for the USA, UK and Japan to investigate if monetary policy changes depend on business cycle conditions, i.e. recessions and expansions of the economy. Then, the paper evaluates the policy implications of this monetary policy rule....