substantial pass-through effects to inflation, given the large and persistent depreciation movement. Widespread indexation … indexation is less relevant to the inflation dynamics. Overall, inflation would have remained within the central bank's target …This paper examines inflation dynamics in Chile during the last peso depreciation episode 2013-15. The evidence is for …

episode price-setting firms' expect inflation to be highly persistent and opt for backward-looking indexation. As the central … that choose the rate for indexation also re-assess the likelihood that announced inflation targets determine steady …-state inflation and adjust indexation of contracts accordingly. A strategy of announcing and pursuing short-term targets for inflation …