The relationship between exchange rates and inflation targeting revisited
By: Sebastian Edwards.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- working paper 12163; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 12163.
Publisher: National Bureau of Economic Research
Published: 2006
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper deals with the relationship between inflation targeting and exchange rates.  I address three specific issues: first, I analyze the effectiveness of nominal exchange rates as shock absorbers in countries with inflation targeting.  This issue is closely related to the magnitude of the "pass-through" coefficient.  Second, I investigate whether exchange rate volatility is different in countries with an inflation targeting regime than in countries with alternative monetary policy arrangements.  And third, I discuss whether the exchange rate should play a role in determining the monetary policy stance under inflation targeting.  An alternative way of posing this question is whether the exchange rate should have an independent role in an open economy Taylor rule"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/1/2006.

Includes bibliographical references.

Also available in print.

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Mode of access: World Wide Web.