lowering inflation. Such recent developments have brought to the forefront the idea that freely mobile capital, independent … all three. Inflation-targeting regimes being adopted by many countries provide a way of resolving this dilemma …

the interest spread contains little information that can be used for predicting future economic activity. The term …

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

, which involves a commitment to higher future inflation. This commitment mechanism works even though, realistically, the …

variable (interest rate) to fundamental ones (inflation and output gap). This study looks for empirical evidence of a more … sophisticated monetary policy, one which takes into account expected future developments. An important piece of information added is … inflation shocks. These shocks are significant in the estimated Taylor rule, confirming that policymaking is forward looking …