This paper explores the role of exchange rates in emerging economies with inflation-targeting regimes, an issue that … has become especially germane during the current episode of financial turmoil and volatile capital flows. Under inflation … targeting, the interest rate is the main monetary policy tool for influencing activity and inflation, and there is little …

This paper shows that the response of inflation to external shocks is very different when the authorities target the … real exchange rate than when they follow a fixed exchange rate or a preannounced crawling peg. Specifically, shocks that … would have no effect on the steady-state inflation rate under a fixed exchange rate are either inflationary or deflationary …

-side flexibility are indeed the main channel through which monetary policy lowers the volatility of inflation and, even more …

some of the area's institutional features, which may impart considerable persistence to area-wide inflation, caution … against shifting to conventional inflation targeting. But the time series evidence also seems to point to a relatively loose … connection between variations in nominal money growth and inflation in the short to medium run. As a consequence, effective …

toward an increase in expected inflation falls as debts increase beyond a certain threshold level. A debt …-constrained interest rate rule and the threshold level of debt are jointly estimated for Canada during the first decade of its inflation … loose than what inflation indicators called for. …

. Imported commodity price shocks are significant in explaining inflation in the region. Governments are another driving force of …This paper analyses inflation dynamics in the Central African Economic and Monetary Community (CEMAC) using a … inflation dynamics mainly through controlled prices and the role of capital expenditure in domestic activity. In most CEMAC …

strongly prefer an AMPF regime, but the estimation is not very informative about whether the inflation coefficient in the …

inflation. The results also suggest that a disequilibrium in the money market has a lasting impact on inflation. The paper …