had involuntarily exited from its fixed exchange rate regime and had experienced a sharp currency depreciation as a result. The macroeconomic background was one of high and rising inflation expectations but a contracting real economy. The initial conditions for inflation targeting were not, therefore, particularly propitious. Despite this unfavorable backdrop, the United Kingdom’s experience wi...

On 8 October 1992, three weeks after sterling’s departure from the Exchange Rate Mechanism of the European Monetary System, Norman Lamont, then Chancellor of the Exchequer, established a new framework for monetary policy based on a range of 1%–4% for annual RPIX inflation.(1) In 1997 this framework was further developed with the Bank of England being given operational independence and a symmetr...

developing countries, including iran, have a high degree of volatility of macroeconomic variables. fluctuations inex change rate, bank interest rate and inflation rate can create insecure environment for in vestorsin iran. hence, this study examined the impact of macroeconomic variables on the tobin’s q index for the sugar companies of tehran stock exchange (tse) during the period between1380-1...

t he investigation of exchange rate pass-through is an important issue in international finance. the relationship between exchange rate pass-through and exchange rate arrangements such as the dollarization regime has been examined in recent decades. for this purpose, the main objective of this study is to investigate the effect of exchange rate pass-through on the domestic inflation in selecte...

Existing empirical evidence on the effect of inflation-targeting inflation volatility is, at best, mixed. However, comparing across alternative monetary policy regimes, i.e., pre- and post-inflation-targeting, begs question. The question is not whether has changed, but instead different than it otherwise would have been. Given this, our paper uses cosine-squared cepstrum to provide overwhelming...

Good monetary policy is both simple and complicated. The principles for good monetary policy are simple: Perform flexible inflation targeting, which means aiming to stabilize inflation around an explicit low positive numerical inflation target with some weight also on stabilizing the output gap, that is, stabilizing output around a measure of potential output. Because of the lags between moneta...