monetary policy. Further interest rate liberalization should, therefore, strengthen the information conveyed by movements in …

to assess the potential impact of different combinations of monetary and fiscal policies on output, inflation, and the …

. First, it explores the interest rate-inflation relationship in economies with different levels of external and domestic … public debt using panel- and crosssection data. The results show that interest rate-inflation elasticity weakens with debt …

After a long period of global price stability, in 2008 inflation increased sharply following unprecedented increases in … the price of oil and other commodities, notably food. Although inflation remained lower and growth higher in inflation … world slowdown helped avert the worse, but inflation stayed high in many inflation targeting countries. This paper uses a …

This paper presents a model for Inflation Targeting under imperfect policy credibility. It modifies the conventional … time; non-linearities in the inflation equation and in the credibility generating process; and an explicit loss function …. The model highlights problems associated with the practice of setting a series of rigid near-term inflation targets. Also …

of a freely floating exchange rate, an explicit target for inflation, and a mechanism than ensures a stable government … domestic and CPI inflation targeting interest rate rules alongside a ''Structural Surplus Fiscal Rule'' as followed recently in … Chile. A comparison with a fixed exchange rate regime is made. We find that domestic inflation targeting is superior to …