proportionally to inflation. We show that conditions under which these rules generate aggregate instability by inducing liquidity … that respond to expected future inflation are more prone to induce endogenous cyclical and chaotic dynamics the more open …

increases in domestic inflation. We show that one way to understand these episodes is as manifestations of balance of payments … accelerating fashion and, if the government targets CPI inflation, by fast increasing domestic inflation …

An immigration shock has an ambiguous effect on inflation. On one hand, aggregate consumption increases with a suddenly …. The response of an inflation-targeting central bank to an immigration shock is, therefore, not obvious. We study these … are designed to characterize the possible response of inflation and monetary policy in Chile, a small open emerging …

Using a New-Keynesian small open economy model, we examine the effects of central bank transparency on inflation …

flexible prices. Second, under the optimal policy the volatility of non-tradable inflation is close to zero. Third, stabilizing … nontradable inflation is optimal regardless of the financial structure of the small open economy. Even for a moderate degree of …

Lukas Heim evaluates the performance of a price-level targeting rule compared to that of a standard inflation targeting …, and several additional structural disturbances. The results show that - exactly as expected - the volatility of inflation …-side shocks. Since inflation and output are targeted simultaneously, none of the two policies is strictly dominant. Contents …

techniques to understand the effect of remittances on GDP, inflation, real exchange rate and money supply, depending on the … inflation, GDP, the domestic money supply and appreciate the real exchange rate under a fixed regime, but temporarily decrease … inflation, increase GDP, appreciate the real exchange rate and generate no change in the money supply under a flexible regime …

This paper presents a preliminary simultaneous equation model capable of explaining New Zealand's post-war inflation … both tightly administered and effective. It is therefore reasonable to assume that New Zealand's rate of inflation and … monetary policy are somewhat independent of world inflation rates. Six dependent variables have been incorporated for this …

In the paper we have investigated to what extent the behaviour of CPI inflation depends on changes in domestic economic … price indices respond to exchange rate movements and/or foreign inflation. The impact of exchange rate is most substantial …

Inflation volatility is clearly important for structural analysis, forecasting and policy purposes, yet it is often … overlooked in the literature. This paper compares inflation volatility among advanced open economies with inflation targeting …, the volatility of inflation was similar among countries, even when controlling for monetary policy activity and other …