The Opportunistic Approach to disinflation is an influential model of optimal monetary policy. This strategy for disinflation suggests that in a low inflation environment policymakers' would give higher weight to inflation stabilization when inflation is strengthening, but higher weight to...

We construct a time varying financial openness index by estimating a small open economy model of interest rate determination and examine the implications of evolution of capital account liberalisation on economic performance over the period April 1993 - March 2004. The behaviour of openness...

We propose a new methodology to construct core inflation which is, unlike other conventional methods, not based on ad hoc elimination/trimming of prices. The empirical results suggest that the proposed measure of core inflation is highly correlated with headline inflation and is noise free; hence...