to output contraction and price inflation in the face of unanticipated currency depreciation. In contrast, the reduction … in net exports determines output contraction without reducing price inflation in the face of unanticipated currency …

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 …

, and inflation. The authors develop a framework that emphasizes the different roles of monetary and fiscal policy and apply …

This paper shows that the response of inflation to external shocks is very different when the authorities target the … would have no effect on the steady-state inflation rate under a fixed exchange rate are either inflationary or deflationary …

regime in minimizing inflation and output trade-offs. The estimates of the structural parameters fall within plausible ranges …, and simulation results suggest that while the peg amplifies output, consumption and (price and wage) inflation volatility …

should remain vigilant in assessing the potential impact of foreign prices on the dynamics of inflation in Tanzania. In this …The paper examines the effect of exchange rate changes on consumer prices in Tanzania using structural vector … autoregression (VAR) models. Using a data set covering the period 1990-2005, we find that the exchange rate pass-through to inflation …