inflation targeting, exchange rate management benefits households in the tradable goods sector but in the long run these …

Whether or not inflation targeting adoption leads to increased volatility of exchange rates is controversial. The … volatility increases with inflation targeting as a result of the flexible exchange rate regime. Others argue that inflation … whether interest rate policy in inflation targeting frameworks – that is subjected to control inflation rate – may reduce the …

overly sensitive to monetary policy shocks, and that this is consistent with a model where long-term inflation expectations … are not anchored because agents must infer the central bankś inflation target from noisy interest rate movements. Using … inflation target - imperfect information about the target plays only a small role in un-anchoring expectations in their model …

This work describes the main characteristics of an inflation targeting regime and derives the optimal solution for …

Inflation Targeting (IT) is a monetary policy in which keeping inflation as close as to the target level using policy … tools is the main focus for many central banks. However, purely targeting inflation has the potential to reveal the drawback … of the trade-off between inflation and output, leaving out the possibility of perfectly anticipated inflation where there …

inflation in the context of a managed exchange rate regime. Over the past two years, the central bank has taken steps to enhance …