Fear of Floating in Brazil: Did Inflation Targeting matter?

Nogueira, Reginaldo Pinto; León‐Ledesma, Miguel A.

doi:10.1016/j.najef.2009.05.002

Cited by 17 publications

(8 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For India, the average ERPT is estimated at +0.14, broadly in line with previous studies (Bhattacharya, Patnaik, and Shah, 2008;Forbes, Hjortsoe, and Nenova, 2017;Kapur and Behera, 2012). For Brazil, the average ERPT is estimated at +0.06 since 1998, toward the lower end of other studies (Forbes, Hjortsoe, and Nenova, 2017;Ghosh, 2013;Nogueira and LeÃşn-Ledesma, 2009). For South Africa, the ERPT is estimated at +0.07, broadly in line with the evidence presented by Kabundi and Mbelu (2018).…”

Section: In ‡Ation and Exchange Rate Pass-throughsupporting

confidence: 88%

Inflation and Exchange Rate Pass-Through

Stocker

Yilmazkuday

2019

View full text Add to dashboard Cite

This paper investigates exchange rate pass-through into consumer prices by considering the nature of the shock triggering currency movements. By individually estimating structural factor-augmented vector autoregression models for 55 countries, monetary policy shocks are shown to be associated with higher exchange rate passthrough measures compared to other domestic shocks, while global shocks have widely di¤erent e¤ects across countries. Pass-through measures tend to be lower in countries that combine ‡exible exchange rate regimes and credible in ‡ation targets, where central bank independence can greatly facilitate the task of stabilizing in ‡ation by using the exchange rate as a bu¤er against external shocks. It is implied that exchange rate pass-through should be investigated by considering the nature of the shock that triggers currency movements and country characteristics that a¤ect the response of prices.

show abstract

Section: In ‡Ation and Exchange Rate Pass-throughsupporting

confidence: 88%

Inflation and Exchange Rate Pass-Through

Stocker

Yilmazkuday

2019

View full text Add to dashboard Cite

show abstract

“…For the Russian Federation, it is measured at +0.11, consistent with findings of the Central Bank of the Russian Federation (2014). For Brazil, the average ERPTR is estimated at +0.06 since 1998, toward the lower end of other studies Ghosh 2013;Nogueira and Leon-Ledesmab 2009). For South Africa, the ERPTR is estimated at +0.07, broadly in line with the evidence presented in Kabundi and Mbelu (2018).…”

Section: Inflation and Exchange Rate Pass-throughsupporting

confidence: 78%

Inflation and exchange rate pass-through

Stocker

Yilmazkuday

2020

Journal of International Money and Finance

View full text Add to dashboard Cite

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

show abstract

“…In the third paper we mention, Nogueira (2011) demonstrates that after adoption of inflation targeting, many countries addressing high inflation rates have become able to decrease the level of exchange rate pass-throughs. However, the variation level of the exchange rate has increased dramatically, and central banks have continued intervening, which means central banks' interventions simply resemble a reaction to exchange rate movements to bring domestic inflation under control, which is affected by the exchange rate movements.…”

Section: Business and Economic Researchmentioning

confidence: 99%

Fear of Floating in Turkey

Şiklar

Sekmen

2015

BER

View full text Add to dashboard Cite

Many emerging markets have adopted floating exchange rate regimes after currency crises. Turkey has experienced a floating regime since 2002 combined with inflation targeting. The aim of this paper is to investigate the “fear of floating” phenomenon, named by Calvo and Reinhart (2002), in the transition to a low and stable inflation environment in Turkey before and after inflation targeting. The results demonstrate that the levels of exchange rate pass-through decreased substantially, thus weakening the “fear of floating” phenomenon in Turkey after inflation targeting. Therefore, we argue whether any reactions of the central bank to foreign exchange rates imply the “fear of floating” or the “fear of inflation”

show abstract

Fear of Floating in Brazil: Did Inflation Targeting matter?

Cited by 17 publications

References 16 publications

Inflation and Exchange Rate Pass-Through

Inflation and Exchange Rate Pass-Through

Inflation and exchange rate pass-through

Fear of Floating in Turkey

Contact Info

Product

Resources

About