Inflation targeting works well in Latin America

Includes bibliography

Financial market reaction to central bank monetary policy communications under an inflation- targeting regime: the case of Brazil

Includes bibliography

Inflation and the variability of relative prices in the Caribbean: evidence from panel threshold models

Includes bibliography

Exchange-rate variations and the rate of inflation in emerging economies

This paper develops a structural general equilibrium model to analyse the reactions of the nominal exchange rate and the domestic price level to three types of external shock in emerging economies that have limited access to world capital markets. Although the results depend crucially on the type of external shock, each of the two national balance-sheet parameters considered here —the risk premium and the ratio of external indebtedness— exacerbates the reactions of the two endogenous variables without altering the degree of exchange-rate pass-through (erpt). Moreover, flatter Phillips curves, as observed today in many economies, tend to increase erpt. On the basis of these results, the authorities of emerging economies seeking to stabilize markets and limit erpt are advised to minimize the two risk parameters by applying a flexible inflation-targeting regime.

Exchange rate pass-through and inflation targets in Chile

Using quarterly data on the Chilean economy from 1986 to 2009, this article looks at the effect of gradual implementation of an inflation-targeting regime on exchange rate pass-through to prices. Initially, the introduction of inflation-targeting contributes to substantial reductions in the pass-through coefficient. However, in the second phase of implementation, once the monetary authority extends the policy horizon and introduces greater flexibility into the exchange rate system, the pass-through coefficient rises sharply. The findings of this study show that exchange rate pass-through to prices, in addition to being sensitive to the inflationary environment, is closely tied to the rules of the game that shape the monetary policy framework.

Potential output in Latin America: a standard approach for the 1950-2002 period

Includes bibliography

World inflation and foreign debt: the case of the improper deflator

Includes bibliography

Inflation and growth: a summary of experience in Latin America

Includes bibliography

Runaway inflation: experiences and options

Includes bibliography

Structural elements of spiralling inflation

Includes bibliography

Ecuador: the country's progress from chronic to moderate inflation

Includes bibliography

Central America: inflation and stabilization in the crisis and post-crisis eras

Includes bibliography

Central bank independence and its relationship to inflation

Includes bibliography

Relative prices in Latin America in periods of low inflation and structural change

Includes bibliography

The competitive real exchange-rate regime, inflation and monetary policy

Includes bibliography