To analyze the main determinants of secondary market prices of Bulgarian Brady Bonds, the authors investigate to what extent fluctuations in domestic fundamentals affect the bonds'secondary market price. They also assess the extent to which external shocks affect the bonds'prices. They estimate...

There is widespread consensus among economists that high inflation is often caused by the government's need to raise seignorage to finance high budget deficits. Depending on the shape of the money demand function, steady-state seignorage may follow a Laffer curve, where seignorage first rises...

The hypothesis that the price adjustment to nominal shocks is instantaneous has been part of the monetarist approach explaining the inflationary process in Argentina. But the authors argue that monetary and exchange rate policies have had different effects on relative prices and thus have a...

Emerging market economies (EMEs) have experienced a noticeable decline in inflation since the mid-1990s. Whether this stable price environment in EMEs is likely to endure and what kind of policies need to be followed to ensure price stability, however, still continue to be questions of...

The authors of this paper set up a simple inflation model to analyze the transmission and short-run dynamics of inflation in partially reformed socialist economies. The model has features derived from market economies with few producers and sticky prices. It also tries to capture some attributes...

The growing adoption of an inflation targeting framework in emerging market economies has increased the importance of understanding inflation dynamics and forecasting its future path in these countries. The author considers the case of Turkey and investigates the performance of models that have...