Inflation mechanisms, expectations and monetary policy

Papers in this volume were prepared for a meeting of senior officials from central banks held at the Bank for International Settlements.

Inflation has been off-target for some time in many economies, both advanced and emerging. Whereas advanced economies have mostly been experiencing inflation below target, the experience among emerging market economies has been more mixed. Inflation has been below target in several EMEs in Asia and Central and Eastern Europe, but above target in some Latin American economies as well as in Russia, South Africa and Turkey. This volume explores the reasons behind this diverse inflation performance in EMEs and analyses possible changes to the inflation mechanism.

JEL classification: E31, E52, F62