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 …

Inflation targeting (IT) serves as monetary policy framework in several advanced economies, where it has enhanced … instruments to inflation. These prerequisites are largely absent among developing countries, though several of them could with … some further institutional changes and an overriding commitment to low inflation make use of an IT framework. …

This paper addresses the question of why inflation has not yet converged to price stability in Central America and the … that all central banks raise interest rates to curtail inflation but only some of them increase it sufficiently to … effectively tackle inflation pressures. It also shows that some central banks care simultaneously about exchange rate stability …

inflation combined with a free float seems to be the ultimate option. The paper shows how to design and operationalize such a …

which have a framework of explicit inflation targets for the implementation of monetary policy. This adaptation should aim …

system development, sovereign debt vulnerabilities, and ways to sustain progress in reducing inflation by strengthening the …

to shift to inflation targeting. It first describes the changing transmission channels over the last decade. Second, the … inflation targeting over the medium term. …