After 1980s, chronic inflation in Turkey has shaken the confidence in the domestic currency, and thus operating debit …-credit transactions through dollars. The aim of this study is to analyse the impact of exchange rate pass-through into inflation in both … with inflation targeting policy in an attempt to switch to the advanced economy, and to examine whether stabilization …

Recent literature has argued that exchange rate pass-through (ERPT) into domestic inflation has been declining in many … countries following a dramatic change in inflation environment during the 1990s. Available empirical results face two central … arbitrariness; and (ii) the link between a lower ERPT and inflation environment is usually based on simple correlation analysis and …

exchange rate, through Consumer Price Index (CPI) inflation targeting is, however, beneficial. Welfare can, moreover, be …

The central bank's optimal reaction to foreign and domestic shocks is analyzed in an inflation targeting model allowing … that the interest rate response to foreign shocks is smaller when pass-through is low. Second, the inflation …

This paper aims to contribute to a better understanding on how inflation targets are set. For this reason, we first … inflation targets are set; we then estimate the determinants of the level of inflation target in 19 inflation targeting … than as a point). Inflation targets are found to reflect macroeconomic fundamentals. Higher level as well as higher …

Under inflation targeting inflation exhibits negative serial correlation in the United Kingdom, and little or no …, inflation appears to be (nearly) purely forward-looking, so that no mechanism introducing backward-looking components is … necessary to fit the data. These results question the notion that the intrinsic inflation persistence found in post-WWII U …

An increasing number of countries have adopted inflation targeting since New Zealand first adopted this framework in … early 1990. Currently there are 21 countries using inflation targeting in every continent of the world. This paper discusses … the characteristics of these countries and how the adoption of inflation targeting has affected their economic performance …

crawling peg exchange rate regimes, Colombia adopted a full-fledged inflation-targeting (IT) regime in 1999, with inflation as …