In this paper we estimate the evolution of the implicit inflation target underlying the monetary policy of 18 ‘inflation targeting lite’ economies (i.e., emerging countries that target inflation implicitly) using a time‐varying parameter specification of the Taylor rule. We find...

A number of studies have examined the role of typical demand supply factors in explaining inflation. The contribution in this chapter is to investigate the possible role of product market imperfections on inflation and inflation persistence, especially among emerging market economies. Using a...