This study analyzes the relationship between energy production from fossil fuels, low-carbon sources, and renewable sources inflation in Kazakhstan 2000 to 2021, using VAR method within framework of Taylor rule. Energy is categorized under two headings, namely fuels other sources. While examining inflation, interest rate GDP growth rate, which affect were also included model as control variable...

concept of inflation compensation. Finally, we provide evidence that Federal Reserve communication and surprises in monetary policy actions bear on the uncertainty surrounding the expected rate of inflation. For one concept of inflation expectations, we find that Federal Reserve communication reduces uncertainty about the future rate of inflation, while surprises in monetary policy actions incr...

Two major developments marked the monetary sector in emerging market economies (EMEs) in the 1990s. One was the steady decline in the inflation rate to low levels in the second half of the decade. The other was the growing preference for conducting monetary policy based on inflation targeting. For example, average inflation in 10 of the 14 EMEs discussed in this paper declined to a single digit...

ARLIER in the decade, a number of industrial countries adopted a framework for carrying out monetary policy that became known as inflation targeting. They adopted this framework as a response to the difficulties they had encountered in conducting their monetary policy using an exchange rate peg or some monetary aggregate as the main intermediate target. At the same time, they saw the move as a ...

On 21–22 July 1997, the Bank convened a conference entitled, 'Monetary Policy and Inflation Targeting'. The following excer pt is the introductory chapter of the conference volume. Medium-term price stability is widely accepted as the appropriate ultimate goal for monetary policy. This reflects two ideas. The first is that high rates of inflation distort decision-making, ultimately leading to s...

The analysis of macroeconomic variables for current situation in Iran indicates a Conundrum. Solving this puzzle is vital for Central Bank of Iran in order to choose an appropriate approach for monetary policy and banking supervision. Increase in liquidity growth rate, significant decrease of inflation rate and interest rate rigidity are the three sides of this puzzle. This study designs an inn...

In this comment, we answer the question posed in Svensson’s (2000) paper “Does the P* model provide any rationale for monetary targeting?” – in contrast to him – in the affirmative. We argue that a strategy of monetary targeting can be rationalised within the P* framework. Furthermore, we demonstrate that money growth targeting is a special form of inflation forecast targeting based on a ‘limit...