model embodies the key principle that, in an inflation-targeting framework, the role of monetary policy is to provide an … anchor for inflation and inflation expectations. The development and calibration of this model is an ongoing process. …

the inflation tax. Accordingly, continued effort is likely to be needed to attain a fiscal position that is sustainable …

This paper extends a small linear model of the Israeli economy to allow for nonlinearities in the inflation …

Under a flexible inflation targeting regime, should policymakers avoid any reaction to movements in the foreign … exchange market? Using data for six advanced open economies explicitly targeting inflation, the paper examines empirically … monetary policy responses in inflation-targeting, open economies have changed significantly, as the institutional framework for …

This paper shows that the response of inflation to external shocks is very different when the authorities target the … would have no effect on the steady-state inflation rate under a fixed exchange rate are either inflationary or deflationary …

This Selected Issues paper for South Africa presents a quantitative analysis of inflation dynamics in the country. The … inflation. Exposed to exchange rate and other shocks, the model confirms that a delayed policy response to inflation shocks … leads to persistently higher inflation rates and, subsequently, to a sharp real contraction of the economy. …