For a country that chooses not to "permanently" fix its exchange rate through a currency board, or a common currency, or some kind of dollarization, the only alternative monetary policy that can work well in the long run is one based on the trinity of (i) a flexible exchange rate, (ii) an inflation target, and (iii) a monetary policy rule.' While not often put into this threepart format, the de...

This study examines the treatment effects of inflation targeting on exchange rate volatility across a large panel 91 (36 targeting) countries over 1985-2019 period annual basis. We apply propensity score matching methods to developed, developing, and high-income non-inflation countries. Our results reveal that, average, adopting policy exerts lower in all sample developing economies. However, s...

We examine global dynamics under learning in New Keynesian models with price level targeting that is subject to the zero lower bound. The role of forward guidance is analyzed under transparency about the policy rule. Properties of transparent and non-transparent regimes are compared to each other and to the corresponding cases of inflation targeting. Robustness properties for different regimes ...

study of price trend in iran, showed that general level of prices is rising continually during time. an inflation situation has effect on most economic variables. therefore investigation of effective factors and variables on inflation is important. exchange rate and gap in product are factors which affect inflation. in this paper the impact of exchange rate shocks and gap on inflation in iran’s...

This paper analyzes the stabilizing properties of alternative monetary policy regimes. In practice there is a choice between two broad types of monetary policy regimes: a fixed exchange rate regime or a floating exchange rate regime. In this paper I compare exchange rate targeting with different floating exchange rate regimes: strict price level targeting, flexible price level targeting and out...