Hybrid Inflation Targeting Regimes1

This paper uses a DSGE model to examine whether including the exchange rate explicitly in the central bank’s policy reaction function can improve macroeconomic performance. It is found that including an element of exchange rate smoothing in the policy reaction function is helpful both for financially robust advanced economies and for financially vulnerable emerging economies in handling risk premium shocks. As long as the weight placed on exchange rate smoothing is relatively small, the effects on inflation and output volatility in the event of demand and cost-push shocks are minimal. Financially vulnerable emerging economies are especially likely to benefit from some exchange rate smoothing because of the perverse impact of exchange rate movements on activity.Inflation targeting, monetary policy, exchange rate

Hybrid Inflation Targeting Regimes

This paper uses a DSGE model to examine whether including the exchange rate explicitly in the central bank’s policy reaction function can improve macroeconomic performance. It finds that including an element of exchange rate smoothing in the policy reaction function is helpful for handling risk premium shocks by either financially robust advanced economies or financially vulnerable emerging economies. As long as the weight placed on exchange rate smoothing is relatively small, the effects on inflation and output volatility in the event of demand and cost-push shocks are minimal. Financially vulnerable emerging economies are especially likely to benefit from some exchange rate smoothing because of the perverse impact of exchange rate movements on economic activity.

Determination of the Time Delay in the Arrival of Jovian Signals at Opposite Ends of a Long Baseline Fringe Synthesis Interferometer

In order to determine the size of the decametric sources, the technique of long baseline radio interferometry is being employed. The University of Florida at Gainesville is a pioneer in this field. In 1964, T. D. Carr introduced the procedure of recording the signals received at each end of an interferometer on magnetic tape and comparing the re-corded signals at a later time. This eliminated the necessity for transmission lines over the length of the baseline, allowing greater separation to attain higher resolution