The Maastricht inflation criterion, designed in the early 1990s to bring "high-inflation" EU countries in line with … "low-inflation" countries prior to the introduction of the euro, poses challenges for both new EU member countries and the … European Central Bank. While the criterion has positively influenced the public stance toward low inflation, it has biased the …

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

This paper provides an overview of inflation targeting frameworks and macroeconomic performance under inflation … targeting. Inflation targeting frameworks are generally quite similar across countries, and a broad consensus has developed in … favor of "flexible" inflation targeting. The evidence shows that, although inflation target ranges are missed frequently in …

by the output gap and unit labor cost growth) and inflation has been weak, constrained in part by trade openness …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 …

The ECB's objective of medium-term inflation below 2 percent has been portrayed by critics as ambiguous, asymmetric …, and excessively stringent. This paper attempts a comprehensive evaluation of the trade-offs for the euro area and finds … that: (1) in terms of guiding inflation expectations and policymaking, the current definition has functioned much as would …

higher food shares in CPI baskets, fuel intensities, and pre-existing inflation levels were more prone to experience … scores seem to have contained the impact of these shocks better. The effect of the presence of inflation targeting regimes …, however, appears very modest and not evident during the 2008 food price shock.The evidence suggests that trade openness …

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. …

As Albania has succeeded in reducing inflation to very low levels, understanding the driving forces behind the behavior …

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 …