examine the output gap’s usefulness. The results suggest that although output gap uncertainty leads to more inflation and … policy based only on observable inflation and output growth. …

This paper explores the role of exchange rates in emerging economies with inflation-targeting regimes, an issue that … has become especially germane during the current episode of financial turmoil and volatile capital flows. Under inflation … targeting, the interest rate is the main monetary policy tool for influencing activity and inflation, and there is little …

Money has only limited information value for future inflation in Ghana over a typical monetary policy implementation …) are shown to be important predictors of future price changes. Inflation inertia is high and inflation expectations are … largely based on backward-looking information, suggesting that inflation expectations are not well anchored and hence more is …

, the effects on inflation and output volatility in the event of demand and cost-push shocks are minimal. Financially … emerging economies in handling risk premium shocks. As long as the weight placed on exchange rate smoothing is relatively small …

inflation combined with a free float seems to be the ultimate option. The paper shows how to design and operationalize such a …

to shift to inflation targeting. It first describes the changing transmission channels over the last decade. Second, the … channels are evaluated in a VAR model. The exchange rate channel plays a strong role in propagating monetary shocks to output … inflation targeting over the medium term. …

Growth and inflation in Turkey have been volatile over the last two decades. It would, therefore, be useful to identify … indicators that anticipate economic conditions and inflation. This paper investigates the predictive performance of economic … indicators for inflation and real output growth in Turkey. We find that (i) the forecasting ability of individual indicators is …

adjustment rule, under alternative inflation targets, in terms of output losses in a macroeconomic model, using European Union … credibility, and that a positive inflation target, as opposed to zero inflation, leads to higher and less volatile output. These … countries supports country-specific flexible inflation targeting. …

EMs and policies became more procyclical during the recent crisis. (ii) Inflation targeting and better institutions have …, over and above better inflation outcomes. …