When faced with a relative price shock, monetary authorities often aim to contain its second round effects on inflation … while accepting first round effects. We analyze the experience of South Africa and other inflation targeters to explore … whether and when this policy prescription implies changing the monetary policy stance. Inflation targeting central banks …

Inflation-targeting central banks have a respectable track record at explaining their policy actions and corresponding … inflation outturns. Using a simple forward-looking policy rule and an assessment of inflation reports, we provide a new … methodology for the empirical evaluation of consistency in central bank communication. We find that the three communication tools-inflation …

This paper examines the effects of inflation and associated financial instability on income distribution. Using both … pooled cross country and single country time series models, the level of inflation, inflation variability, and the … measures of income distribution, the issue as to whether inflation is a progressive or regressive tax is found to be negatively …

This paper studies the effect of inflation on the operation of financial markets, and shows how the ability of … financial intermediaries to distinguish among heterogenous firms is reduced as inflation rises. This point is illustrated by … presenting a simple model where inflation affects firms’ productivity. In particular, productivity differentials narrow as …