This paper examines the implications of inflation persistence for the inverted Fisher hypothesis that nominal interest … rates do not adjust to inflation because of a high degree of substitutability between money and bonds. It is emphasized that … the substitutability between nominal assets and capital renders the hypothesis inconsistent with the data when inflation …

This paper revisits the link between the nominal exchange rate regime and inflation, based on a sample of 145 emerging … low inflation benefits associated with pegging the exchange rate. To test our hypothesis, we exploit a novel dataset of … significantly lower inflation in EMDCs than flexible exchange rates, and that this effect is much stronger for de facto pegs that …

Inflation targeting lite (ITL) countries float their exchange rate and announce an inflation target, but are not able … to maintain the inflation target as the foremost policy objective. This paper identifies 19 emerging market countries as … practitioners of ITL. They seem to focus mainly on bringing inflation into the single digits and maintaining financial stability …

This paper studies the role of central bank communication of its economic assessment in shaping inflation dynamics … agents' understanding of policy reasoning, could bring about less volatile inflation and interest rate dynamics, and afford …

model embodies the key principle that, in an inflation-targeting framework, the role of monetary policy is to provide an … anchor for inflation and inflation expectations. The development and calibration of this model is an ongoing process. …

This paper asks whether inflation targeting improves economic performance, as measured by the behavior of inflation …, output, and interest rates. We compare 7 OECD countries that adopted inflation targeting in the early 1990s to 13 that did … is no evidence that inflation targeting improves performance. …