Inflation Targeting Regimes

The link between interest rates and exchange rates: do contractionary depreciations make a difference?

“…In consequence, I can write: " f t = f " f t 1 + t , in the former case, and " xd t = " xd t 1 + xd t grouping terms for shocks hitting excess demand. 17 Substituting (3) into (11) yields…”

“…Regarding empirical methods, identi…ed vector autoregressions (IVAR) have recently allowed for simultaneous interaction between exchange rates and interest rates in an attempt to credibly identify monetary and risk premium shocks. Building on work 1 See, e.g., Amato and Gerlach (2002), Carare and Stone (2003) and Fraga et al (2003).…”

The Dynamic Behaviour of Implicit Inflation Targets for ‘Inflation Targeting Lite’ Economies

“…As with any other study on emerging economies, data availability imposes a serious constraint on the selection of countries in a cross‐country analysis. Where relevant data are available our country selection is based on a survey of several pertinent studies such as Angeriz and Arestis (), Carare and Stone () and Stone () . Our sample consists of the following 18 ITL economies: Albania, Botswana, Croatia, Dominican Republic, Egypt, Georgia, Jamaica, Kazakhstan, Mauritius, Morocco, Russia, Slovakia, Slovenia, Sri Lanka, Tunisia, Uganda, Uruguay and Venezuela.…”

“…The literature on inflation targeting is very rich: see, for example, Baxa et al . (), Carare and Stone (), Carare et al . (), Hammond (), Ireland (), Mishkin (), Mishkin and Schmidt‐Hebbel (), Roger () and Walsh ().…”

“… A survey of different inflation‐targeting regimes can be found in Carare and Stone (), who differentiate between three IT regimes, one of which is ITL, based on the clarity and credibility of the commitment to the inflation target. The literature on inflation targeting is very rich: see, for example, Baxa et al .…”