Globalization operates not only by reducing domestic pressures on inflation but also by reducing the scope of domestic … authorities to influence the pace of inflation. First, as markets are integrated, the common, cross-border sources of inflation … increase, reducing the extent of domestically-generated inflation. Based on a methodology identifying common time and sectoral …

We develop a semi-structural new-Keynesian open-economy model, with separate food and non-food inflation dynamics, for …-relevant exercises. First, we filter international and Kenyan data (on output, inflation and its components, exchange rates and interest … inflation. Third, we perform an out-of-sample forecast to identify where the economy—and therefore policy—was likely headed …

been to raise inflation targets to provide more room for policy rate easing during crises. This paper addresses a different … issue: the relationship between inflation and welfare. The literature is surveyed and a model is developed. A key conclusion … is that an increase in inflation targets gives rise to additional welfare costs, even after the extra room to maneuver …

Inflation in Mongolia resembles a roller coaster ride with sharp rises and steep drops. Understanding why is critical … for formulating and assessing monetary policy. Food prices are found to be a key driver of inflation, and, not surprising … underlying inflation by 1 percentage point. So, while inflation will remain volatile due to agricultural shocks, there is space …

times. An inflation shock only slightly reduces the debt ratio for a few quarters. A positive growth shock unambiguously …

prices should lead general price movements, and the level of commodity prices should be correlated with the general inflation … broadly support the conclusions of the model. Commodity price levels tend to be cointegrated with consumer-price inflation … rates. Commodity price movements contribute weakly to predictions of inflation rates but more strongly to predictions of …

This paper focuses on the role of debt maturity in managing the government’s incentives to use opportunistic inflation … powerful instrument to affect the time profile of the inflation tax base and, hence, to mitigate the distortions introduced by …

When there are collection lags in the tax system, inflation reduces the real revenues. This is often offered as an … argument for less reliance on the inflation tax. But the optimal rates of other taxes should also be reconsidered in the light …, the optimal inflation tax is independent of the collection lag …

evidence that the price level is countercyclical. However, we find strong evidence that the inflation rate is procyclical in … our sample. Our results show the importance of making a clear distinction between inflation and the cyclical component of …

This paper examines two important issues for a small high-inflation open economy with trade controls where the …