supply disturbances, the stabilisation costs of renouncing monetary autonomy diminish with a flatter output-inflation …

aggregate targets, and inflation targets. Large economies are likely to use floating régimes and inflation targets. Small …

on the extent to which domestic inflation and interest rate surprises contribute to short-run volatility in G3 exchange … rates. We set out a simple model of the implications of different monetary regimes for the response of inflation, interest … rates, and exchange rates to inflation surprises. We then develop an operational measure of central bank transparency, and …

elements' effects on inflation and exchange rate behavior. The results show that each of the three elements has independent and … distinct effects on nominal outcomes. Key findings include: (1) although hard pegs do tend to reduce inflation and attenuate … is associated with a more stable exchange rate and lower inflation; and (3) explicit inflation targeting reduces both …

macroeconomic effects. This finding requires inflation expectations to adjust counterfactually large. When modeling inflation …

of setting inflation at the desired level may be offset by a positive impact on potential output. We show that for entry …