Based on the observed behavior of monetary aggregates and exchange rates, we classify inflation stabilization episodes …

dynamics of the economy, the design ofmonetary policy, and the properties of inflation at different levels of development. A … calibratedversion of the model encompasses both rich and poor countries and broadly replicates theproperties of inflation across the … nearcomplete)stabilization of sticky-price non-food inflation, despite the presence of a foodsubsistencethreshold. Subsistence …

This paper explores inflation dynamics and monetary policy in Bolivia. Bolivia's monetary policy framework has been … effective in stabilizing inflation in recent times. This has been a challenging task given high price volatility of key consumer … framework has contributed to the stabilization of inflation, with effective transmission through the bank lending channel, while …

Inflation persistence is sometimes defined as the tendency for price shocks to push the inflation rate away from its … steady state - including an inflation target - for a prolonged period. Persistence is important because it affects the output … costs of lowering inflation back to the target, often described as the “sacrifice ratio”. In this paper I use inflation …

relationship of various measures of money and inflation. After demonstrating that previous naïve correlations between money and … inflation as established in the 20th century literature have largely disappeared, we explain why this cannot be taken as support …

inflation in the United States. We test for Granger-causality out-of-sample and find, perhaps surprisingly given recent … theoretical arguments, that including money growth in simple VAR models of inflation does systematically improve out … Volcker and Greenspan eras. However, the contribution of money to inflation forecasting accuracy is quantitatively limited and …

transformed money demand, in addition to the observed output gap and inflation, into a simple but optimal interest rate rule …