This paper explores the role of exchange rates in emerging economies with inflation-targeting regimes, an issue that has become especially germane during the current episode of financial turmoil and volatile capital flows. Under inflation targeting, the interest rate is the main monetary policy...

In this paper, a methodology for minimizing downside risks in relationship to the supplier base, supplier capacities, purchase-order-quantity, purchase-order-time, and selling-price is presented. Specific purchasing and selling strategies to minimize downside risks when suppliers have limited...

Conclusions favorable to flexible exchange rates typically accord with expected utility theory in ignoring the costs that exchange rate uncertainty generates for governments, central banks, firms and unions in: (i) choosing among acts; and (ii) existing until learning the outcome of the chosen...