This paper focuses on the uncertainty effect on consumer price inflation based on a panel of 82 advanced, emerging, and developing economies studied over a sample period running from 1995 to 2022. In contrast to the previous literature, we particularly control for the role of monetary policy...

Conventional empirical models of monetary policy transmission in emerging market economies produce puzzling results: monetary tightening often leads to an increase in prices (the price puzzle) and depreciation of the currency (the FX puzzle). We show that incorporating forward-looking...

Conventional empirical models of monetary policy transmission in emerging market economies produce puzzling results: monetary tightening often leads to an increase in prices (the price puzzle) and depreciation of the currency (the FX puzzle). We show that incorporating forward-looking...

You stand at the forefront of a transformative era, propelled by the rapid advancement of artificial intelligence. This guide will illuminate the strategies necessary for navigating the intricate landscape of an economy increasingly shaped by intelligent systems. By embracing adaptability and...

This study expands on the existing literature by investigating the impact of Inflation Targeting (IT) policies on the duration of High Inflation Episodes (HIEs) in both developed and emerging economies. Utilizing Survival Analysis, the study evaluated HIEs' lengths before and after IT policy...

In this paper, we propose a novel approach to classifying inflation-targeting (IT) economies based on fractionally integrated processes. Motivated by the rising prevalence and diversity of IT strategies, we leverage variation in the persistence of inflation rate series to identify four de facto...

In this study, we examine the drivers of persistent exchange rate depreciation in Nigeria and suggest remedial monetary policy actions based on inference from the results. Using time series data from January 2008 to June 2023, the following potential drivers were examined: price level...

Informed by the recent run of rising and persistent inflation in Nigeria, which puts headline and food inflation at 28.2% and 32.8%, respectively, and its attendant consequences on macroeconomic performance, this study makes a case for inflation targeting as an alternative monetary policy...

In the lively public policy debate in Bulgaria on the country joining the Eurozone, a claim is being made that real convergence of at least 90% is a crucial precondition for joining and therefore Bulgaria should wait until the early 2040s, because only then it is expected to achieve such...

In stark contrast to the previous literature, we find that IT leads to price indeterminacy even when the central bank uses a Taylor-like feedback rule to peg the nominal interest rate. We also find that there is no mechanism with IT to determine the current inflation rate or price level. We...