This paper examines the use of the nominal exchange rate in achieving disinflation under managed exchange rate regimes. Most previous empirical studies have not explicitly identified expectations in the wage and price setting behavior of their econometric models, despite the importance of...

A New Keynesian model is used to derive a relationship between current and expected future inflation taking into account future inflationary pressure. This relationship is employed to examine inflationary dynamics resulting from real disturbances to the economy. Positive current inflationary...

This paper investigates the role of financial buffer stocks in company sector decisions. A stylized.analytic model is used to consider how adjustment costs in changing dividends can generate a role for a financial buffer stock in any expenditure decision by the firm which has a influence beyond...