What Measure of Inflation Should a Developing Country Central Bank Target?

We are grateful to the editor, Ricardo Reis, and an anonymous referee for their detailed and constructive comments. We also thank Kaushik Basu, Gita Gopinath, Karel Mertens, Parul Sharma, Viktor Tsyrennikov, and Magnus Saxegaard for helpful comments and discussions. We received helpful comments from seminar participants at the Bank of Korea, the Brookings Institution, Cornell University, the Federal Reserve Board, the IMF, and the Reserve Bank of India. We thank James Walsh for sharing some of his data with us. This research was supported by a grant from the International Growth Centre's Macroeconomics Program. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.