This paper examines the presence of nonlinear mechanisms in the exchange rate pass-through (ERPT) to CPI inflation for 12 euro area (EA) countries. Using smooth transition models, we explore the existence of non-linearities with respect to three macroeconomic factors, namely inflation rate,...

Inflation has been the major global economic problem for most economies throughout the world over the last three decades. It affects individuals, businesses and governments. Many competing hypotheses have been advanced in the literature to explain its causes and give the appropriate remedial...

The objective of this paper is to examine the impact of inflation gap from target, deviation from targeted inflation, to nominal interest rate decision of Central Bank of Republic of Turkey (CBRT) in Turkey. Recently, ıt is discussed whether inflation target (IT) regime is the only method to...

The paper criticizes the translation of the so called GEKS (Gini - Eltetö - Köves - Szulc) method to make consistent (transitive, or "drift free") international comparisons of price indices (parities), into the intertemporal framework. It shows that transitivity appears to be "over-ambitious"...

Exact diagnostics of inflation reasons is the necessary condition of correct stabilization policy oriented to social progress instead of the conjuncture manoeuvring. The purpose of the article is the analysis of inflation reasons in Ukraine and ranging them according to the degree of influence...

This paper analyses the dynamic consequences of interest rate feedback rules in a flexible-price model where money enters the utility function. Two alternative rules are considered based on past or predicted inflation rates. The main feature is to consider inflation rates that are selected over...

This paper investigates distribution of inflation items using various measures of skewness and kurtosis for Turkey covering the period 1996-2007. Considering sensitivity of traditional distribution measures to outlying observations robust skewness and kurtosis are also computed as a novelty....

This paper assesses the performance of the monetary policy in Egypt during the periods following the introduction of the economic reform and structural adjustment program (ERSAP). It sets out to answer the question why the Central Bank of Egypt (CBE) has not been able to achieve the goal of...

Many developing countries are adopting inflation targeting regimes to guide monetary policy decisions. In such countries the share of food in the consumption basket is high and policy makers often employ total inflation (as opposed to core inflation) to set inflationary targets. Therefore,...

Recent New Keynesian models of macroeconomy view nominal cost rigidities, rather than nominal price rigidities, as the key feature that accounts for the observed persistence in output and inflation. Kryvtsov and Midrigan (2010a,b) reassess these conclusions by combining a theory based on nominal...