finding is that only a forward-looking rule based on CPI inflation can account for frequently observed strong UIP violations …

Inflation targeting has been widely adopted in Latin America. In this paper, we show evidence consistent with major … premia estimates using the method suggested by Adrian et al. (2013) for selected inflation targeting Latin American economies …

which an emerging market central bank that targets inflation might lose control of inflation--in other words of the … literature, from Sargent and Wallace (1981) to the modern fiscal theory of the price level has discussed how an unsustainable … perverse effect on inflation. We show that the presence of default risk reinforces the possibility that a vicious circle might …

policy makers to analyse all relevant information in order to undertake effective policy actions. Inflation targeting has … enabled countries to achieve low inflation in the very short term. Due to this, the financial markets have adjusted their long …-term inflation expectations and incorporated them into the interest rate. Risk premiums that compensate for the uncertainty of …