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 conclusion