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 …

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …

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

agents' inflation expectations are influenced by a monetary authority which follows a price-level-targeting rule instead of a …

allow for a standard nominal interest rate shock and an inflation target shock. In response to the highly persistent … inflation target shock we largely find evidence of a Neo-Fisher effect: the nominal interest rate co-moves positively with … inflation and output. In an estimated model version where agents have imperfect information about the nature of monetary shocks …

periods. The exchange rate equation implied by the interest rate rule that allows for interest rate and inflation inertia …

sample periods. The exchange rate equation implied by the interest rate rule that allows for interest rate and inflation …