inflation rates mainly to make up for, and to perhaps exploit, lagging internal and external liberalization in their economies … changes in institutions, suggest that incentives may be diminishing, but not to the point where inflation levels below 5 … inflation, and enhancements to central bank independence could help shield these central banks from pressures. …

This study examines the link between various monetary policy regimes and the ability to manage inflation and exchange … hypothesis is that a system of 'flexible inflation targeting' may be an optimal policy choice for managing these two categories … of risk. A model of inflation and exchange rate risk premiums within the context of inflation targeting is proposed …