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. We discuss dollarization, administrative interventions, and other features complicating monetary policy transmission …

in response to money growth and inflation over three regimes. The empirical results identify episodes of exchange market …

with different degrees of liability dollarization. The paper answers the question of how efficient it is to use inflation …

high degree of exchange rate pass-through to headline inflation and the weak monetary transmission mechanism in PICs … suggest a greater efficacy of exchange rate changes in affecting inflation rather than monetary policy. To assess the tradeoff … rate changes and headline inflation and the low interest rate sensitivity of aggregate demand. …

In the near future, Romania will introduce inflation targeting and fully liberalize its capital account. This paper … central bank loss function containing the deviations of inflation, output, and the real exchange rate from their equilibrium …

autoregression (VAR) models. Using a data set covering the period 1990-2005, we find that the exchange rate pass-through to inflation … should remain vigilant in assessing the potential impact of foreign prices on the dynamics of inflation in Tanzania. In this … regard, the authorities should seek to maintain low and stable inflation and continue the ongoing structural reforms designed …