Much has been written about these three topics. And yet, there continue to be
unresolved policy issues surrounding all of them. In this paper I take a new look at these
issues, and I argue that recent policy debates have missed some of the finer aspects of
these problems. In Sections II and III, on pass-through and volatility, I perform
comparative empirical analyses for a group of 7 countries – two advanced and five
emerging – that have adopted inflation targeting.6 In Section IV, on the other hand, I
discuss the possible role of the exchange rate in determining the monetary policy stance
in an IT system. Section V is the conclusions.
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