) has been to raise inflation targets to provide more room for policy rate easing during crises. This paper addresses a … different issue: the relationship between inflation and welfare. The literature is surveyed and a model is developed. A key … conclusion is that an increase in inflation targets gives rise to additional welfare costs, even after the extra room to maneuver …

This paper develops a theory of international currency portfolios that holds in general equilibrium, and that is … short (long) position in foreign currency. (4) A fiscal theory of exchange rate determination is compatible with general …

From 1970 to 1985, Israel experienced high inflation. It rose in three jumps to new plateaus and eventually exceeded … of fallen bank shares caused the last big jump in inflation that occurred in October 1983. Bank shares had just collapsed …. Because that was foreseen, inflation immediately rose as predicted by the unpleasant monetarist arithmetic of Sargent and …

This Selected Issues paper provides a quantitative assessment of the determinants of inflation in Slovenia, and … evaluates the likelihood of the Maastricht inflation criterion being met. It concludes that on the basis of currently identified … policies, Slovene inflation will likely remain above the Maastricht criterion over the assessment period. The IMF staff …

consistently. Overnight interest rates were raised sharply in early 2004 and lowered subsequently as inflation declined, with real …