anti-inflation policy that has led to a sharp decline in inflation. To institute a monetary policy framework, a nominal … currency in circulation, conduct more sophisticated tests to assess the relationship between inflation and the monetary …

inflation forecast targeting regime in Sri Lanka. The FPAS model provides a relatively good forecast for inflation and a … framework to evaluate policy trade-offs. The model simulations suggest that an open-economy inflation targeting rule can reduce … macroeconomic volatility and anchor inflationary expectations given the size and type of shocks faced by the economy. Sri Lanka …

-looking specifications, especially when targeting core components of GDP and inflation, and combine the best parts of efficiency and …

this paper is that strict headline inflation targeting could be outperformed by sectoral inflation targeting, output gap … inflation stabilization, the two most common policies in modern central banks' practices. For practical monetary policy design … which core inflation targeting turns out to be the optimal choice in the context of implementable Taylor rules. …

a small macro model with NAIRU uncertainity under different assumptions about the way inflation expectations are formed … inflation expectations respond endogenuously policy credibility strengthens the case for forward-looking inflation forecast …

In this paper we study the dynamics of inflation in Macedonia, provide three forecasting tools and draw some policy … conclusions from the quantitative results. We explore three forecasting methods for inflation. We use a Dynamic Factor Model (DFM … New Keynesian Phillips Curve (NKPC) for a more structural model of inflation. The NKPC shows a significant effect of …

for establishing the other building blocks of an inflation targeting framework. It argues that strengthening the … effectiveness of the current monetary policy framework will facilitate the adoption of inflation targeting over time. …