This first edition (version 1.0) of the performance work statement (PWS) handbook contains a summary of how to develop a PWS. Contingency contracting officers (KOs) frequently perform this task in a deployed environment. Information from numerous sources within the defense acquisition community, hard lessons from countless requiring activities (units), and contingency KOs in deployed environments contributed to this handbook. The authors designed this handbook for users operating in a deployed environment based on realities they do not routinely find in continental U.S. operations. The design of the handbook allows you to pick it up and begin reading at any point, much like a reference book, so you may want to start with a topic that interests you. Use the table of contents to identify general areas of interest, find what you need, place the handbook in your Army combat uniform cargo pocket, and tackle a statement of work or PWS-related task with confidence.

This paper explores the role of exchange rates in emerging economies with inflation-targeting regimes, an issue that has become especially germane during the current episode of financial turmoil and volatile capital flows. Under inflation targeting, the interest rate is the main monetary policy tool for influencing activity and inflation, and there is little agreement about the appropriate role of the exchange rate. The exchange rate is a more important monetary policy tool for emerging economies that have adopted inflation targeting than it is for inflation-targeting advanced economies. Inflation-targeting emerging economies generally have less flexible exchange rate arrangements and intervene more frequently in the foreign exchange market than their advanced economy counterparts. The enhanced role of the exchange rate reflects these economies' greater vulnerability to exchange rate shocks and their less developed financial markets. However, their sharper focus on the exchange rate may cause some confusion about the commitment of their central banks to achieve the inflation target and may also complicate policy implementation. Global inflation pressures, greater exchange rate volatility, and the financial stresses from the global financial turmoil that began in mid-2007 are heightening these tensions.