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. …

Inflation targeting (IT) is a relatively new monetary policy framework for low-income countries (LICs). The limited … this gap. It finds that inflation targeting appears to be associated with lower inflation and inflation volatility. At the …, where building credibility of monetary policy is difficult and minimizing output costs of reducing inflation is imperative …

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

The ECB's objective of medium-term inflation below 2 percent has been portrayed by critics as ambiguous, asymmetric … that: (1) in terms of guiding inflation expectations and policymaking, the current definition has functioned much as would … an inflation target centered on 1 1/2-1 3/4 percent; (2) the absence of a specific (point) target for medium …

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 …

with a lag of at least three quarters, with inflation taking seven quarters to respond. Inflation is inertial and … persistent when it sets in, irrespective of the source. Exchange rate pass-through to domestic inflation is low. Inflation turns …

A model in which monetary policy pursues full-fledged inflation targeting adapts well to Ghana. Model features include …: endogenous policy credibility; non-linearities in the inflation process; and a policy loss function that aims to minimize the … variability of output and the interest rate, as well as deviations of inflation from the long-term low-inflation target. The …

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 … inflation responds to international commodity price shocks. …