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Title | A Band-Aid Solution to Inflation Targeting |
Author(s) | Robert Amano, Richard Black, and Marcel Kasumovich |
Type | Working Paper 97-11 |
Date of publication |
May 1997 |
Language | English |
Abstract |
This paper reviews selectively the literature on exchange rate target zones and corresponding methodologies and examines whether they can be used to analyse the inflation-control problem. Given the close correspondence between the exchange rate and inflation-targeting problems, the target-zone literature may help us better understand inflation dynamics and central-bank credibility in the presence of inflation-control targets or ranges. While we find many common elements across the exchange rate and inflation-control target-zone problems, we also find several important differences that make a direct application of the exchange rate target-zone techniques difficult. |
Bank topic index |
Inflation targets |
JEL classification |
E31; E50 |
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