appreciates in response to an asymmetric negative demand shock at the zero lower bound (ZLB) and exacerbates the adverse … macroeconomic effects. This finding requires inflation expectations to adjust counterfactually large. When modeling inflation … at the ZLB. In sharp contrast to the full information model: (i) A negative demand shock concentrated in the home country …

. Previous literature has highlighted the role of an economy's "structure" - such as its inflation volatility, inflation rate …, forecasts predicting how a given exchange rate movement will impact inflation at a specific point in time should take into …

regime driven by the exchange rate and a third one with inflation targeting. The result is a CVAR with constant long … framework, inflation dynamics in Mexico since the country abandoned the gold standard. The model encompasses known results … parsimonious, it does not require inflation lags nor dummy variables. It also displays a very good pseudo out-of-sample forecasting …

inadequate policy tools and theory from the interwar period, set the stage for the Great Inflation of the 1970s. The lessons from … that experience have convinced monetary authorities to reemphasize the goal of low inflation, as it were, committing …