Recent research suggests that the pass-through of exchange rate changes into domestic inflation has declined in many … of inflation with exchange rate changes) to increased emphasis on inflation stabilization by many central banks. This …-through and a decline in the variability of inflation in the 1990s. We also find a statistically significant link between measured …

cooperation is characterized by exclusively inward-looking targeting rules in domestic output gaps and GDP-deflator inflation. The … characterizing the optimal policy are not only in domestic output gaps and inflation, but also in misalignments in the terms of trade …

reaction to Consumer Price Index (CPI) inflation rather than to domestic inflation, welfare-enhancing in all pass-through cases …. This result is moreover independent of whether society values domestic or CPI inflation stabilization. The only case where … inflation and output, are sub-optimal …

Inflation Targeting Regimes. For this purpose, it applies the VAR methodology developed by Kim (2003) to the cases of Mexico and …

-indices. Producer prices react significantlyto exchange rate shocks as well. In contrast, consumer price inflation for services and for …

-indices. Producer prices react significantlyto exchange rate shocks as well. In contrast, consumer price inflation for services and for …

In this paper, we empirically examine the effect of inflation targeting on the exchange rate pass-through to prices in … inflation targeters and twelve inflation nontargeters). Our evidence suggests that inflation targeting in emerging countries … the contribution of exchange rate shocks to price fluctuations in emerging targeters declines after adopting inflation …

explain the observed exchange rate and inflation variability as well as the fact that the regression and VAR estimates tend to …

movements do not have an impact on inflation, as aggregate rules of thumb mask substantial heterogeneities across countries … deviations of inflation from target, including those relating to exchange rate fluctuations. Moreover, under the effective lower … inflation …