This study examines the impact of various monetary policy regimes on the ability to lower inflation and exchange rate … policy framework of flexible targeting of relative inflation risk premium that is believed to be credible and useful for … managing these two categories of risk. A model of inflation and exchange rate risk premiums within the context of inflation …

This study examines the link between various monetary policy regimes and the ability to manage inflation and exchange … hypothesis is that a system of 'flexible inflation targeting' may be an optimal policy choice for managing these two categories … of risk. A model of inflation and exchange rate risk premiums within the context of inflation targeting is proposed …

The paper presents the welfare cost of inflation in a banking time economy that models exchange credit through a bank … welfare cost of a 10% inflation rate instead of zero, for comparison to other estimates, as well as the cost of a 2% inflation … rate instead of a zero inflation rate. The zero rate is specified as the US inflation rate target in the 1978 Employment …