... Economic literature shows evidence that a competitive real exchange rate (RER), i.e., slightly undervalued, is key for development in developing countries. This paper discusses the connections between inflation targeting (IT) regimes and RER trends in economies highly open to capital flows. Following...

... setting. If countries follow monetary policies of flexible inflation targeting, trade wars are relatively mild, with low equilibrium tariffs and small welfare costs. Discretionary monetary policies imply much higher tariffs, high inflation rates, and substantially larger welfare costs. We quantify...

... to be largely adaptive. We build a small-scale macroeconomic model and conduct simulation analysis to study the implications of adopting the makeup strategy for early achievement of the inflation target and the incurring costs. Simulation results show that when the inflation rate has been below the target...

... inflation targeting has replaced full-employment Keynesianism and floating exchange rates have replaced the Bretton Woods set-up of fixed but adjustable exchange rates. We describe how the Bretton Woods system set about achieving the three objectives laid down for a well-functioning international economic...

... in the General Theory. ⁵ In this paper we describe the gradual way in which this two-stage process actually happened. First, macroeconomic policy-making needed to move towards a system of inflation targeting. That took some time. Only once that had been done could macroeconomic policy-making...

... power relations and central bank policies are also embedded within these struggles. Central banks are influenced by the government, local capital, foreign investors and international organisations. The International Monetary Fund (IMF) is a well-known advocator of inflation targeting ( Gabor, 2010...

.../standard_publication_model ) Abstract An inflation-targeting regime has been in place in Ghana since 2007, but the inflation rate has remained persistently high. During the 2007–2017 period, inflation exceeded the announced target by four percentage points on average, despite the target never falling below a relatively...

... a simple three-equation model, which extends the core model in our two recent books ( Carlin and Soskice, 2006 , 2015 ) to one with two equilibria and two associated macroeconomic policy regimes. One is the standard inflation-targeting policy regime with equilibrium associated with central bank inflation...

..., financial stability and economic stability and between the policy measures by which these goals may be addressed. Central banking Inflation targeting Central bank independence The Bank of England’s website describes the Bank’s mission as being ‘to promote the good of the people of the United Kingdom...

... frameworks, such as inflation or price-level targeting, and opens up new possibilities, such as interest rate stabilization, that do not have a natural counterpart in a Taylor rule. There is a vast, and still active, literature on inflation targeting as well as a fast-growing one on price-level and nominal...

... The Author 2015. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved. 2015 Especially after the 2000s, many developing countries let exchange rates float and began implementing inflation targeting (IT) regimes based on mainly manipulation...

.... Published by Oxford University Press. For permissions please e-mail: [email protected] 2015 Abstract In this paper we argue for a new approach to monetary and fiscal policy. During the Great Moderation, the inflation targeting regime worked well. Central banks used the interest rate...

... and fiscal policies in isolation enjoy little success, but a combined monetary and fiscal approach to stabilisation proves highly effective. Moreover, the model suggests that the pursuit of autonomous inflation targeting in each country introduces excessive exchange rate volatility relative to an alternative...

... total inflation via Equations A.4 and A.5 (Appendix A). In general, monetary policy should not respond to supply shocks related to food inflation, because these shocks are often transitory. However, since the inflation target is based on all goods and services (not on core inflation), any targeting...

...Spencer Dale; James Proudman; Peter Westaway monetary policy inflation targeting asset prices quantitative easing E00 E3 E4 E5 E6 From the early 1990s until the financial crisis broke in 2007, the UK economy, among others, enjoyed a period of exceptional stability in terms of inflation...

... , 2001; Borio and Lowe, 2002 ; and Borio and White, 2004 ). Following the recent crisis, however, a perhaps more germane question—especially for inflation targeters who have seen inflation rates first rise above their upper tolerance levels and then turn negative—is how to keep inflation anchored...

... of the proper policy environment, inflation targeting can have a positive impact on real economic performance. New consensus Post-Keynesian economics Monetary policy Fiscal policy Incomes policy Inflation targeting Stagnationism E12 E52 E62 E64 It has become commonplace to refer to a ‘New Consensus...

..., and elucidating the importance of transmission mechanisms in the inflationary process. In this way, inflation targeting moves the quality of econometric methodology and practice into the limelight of economic policy debate. We model the mainland economy only, although the oil sector accounts for close to 20...

...) Open market operations (17) External competitiveness (5) Foreign exchange sales (18)   Exchange rate smoothing (12)   Economic growth (9)   Inflation targeting (3) Price stability (all countries)   Interest rates (3) External competitiveness (1) Foreign...

... Blinder A Emerging Market Economies EME International Monetary Fund IMF Kydland F Prescott E Bernanke B taper tantrum VIX Eichengreen B forward guidance Bank for International Settlements Caruana J inflation lower bound Kuroda H monetary policy Bank of Japan BoJ inflation targeting...