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World Food Prices and Monetary Policy [electronic resource] Chang, Roberto.

Author/Creator:
Chang, Roberto.
Publication:
Washington, D.C. : International Monetary Fund, 2010.
Format/Description:
Government document
Book
1 online resource (66 p.)
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 10/161.
IMF Working Papers; Working Paper No. 10/161
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Local subjects:
Central bank. (search)
Commodity price fluctuations. (search)
Consumer price indexes. (search)
Deflation. (search)
Distribution of inflation. (search)
Economic models. (search)
External shocks. (search)
Food imports. (search)
Foreign currency. (search)
Inflation. (search)
Inflation rates. (search)
Inflation response. (search)
Inflation targeting. (search)
Inflationary pressures. (search)
Lower inflation. (search)
Monetary authority. (search)
Monetary economics. (search)
Monetary fund. (search)
Monetary policy. (search)
Monetary Policy (Targets, Instruments, and Effects). (search)
Monetary policy decisions. (search)
Monetary policy reaction function. (search)
Monetary policy rule. (search)
Monetary policy rules. (search)
Monetary shocks. (search)
Nominal interest rate. (search)
Open Economy Macroeconomics. (search)
Optimal monetary policy. (search)
Price elasticity. (search)
Price inflation. (search)
Price Level. (search)
Price stability. (search)
Producer price indexes. (search)
Real interest rate. (search)
Relative price. (search)
Relative prices. (search)
Terms of trade. (search)
Welfare. (search)
Brazil. (search)
Bulgaria. (search)
Canada. (search)
Mexico. (search)
Romania. (search)
Summary:
The large swings in world food prices in recent years renew interest in the question of how monetary policy in small open economies should react to such imported price shocks. We examine this issue in a canonical open economy setting with sticky prices and where food plays a distinctive role in utility. We show how world food price shocks affect natural output and other aggregates, and derive a second order approximation to welfare. Numerical calibrations show broad CPI targeting to be welfare-superior to alternative policy rules once the variance of food price shocks is sufficiently large as in real world data.
Notes:
Description based on print version record.
Contributor:
Catão, Luis.
Chang, Roberto.
Other format:
Print Version:
ISBN:
1455201448:
9781455201440
ISSN:
1018-5941
Publisher Number:
10.5089/9781455201440.001
Access Restriction:
Restricted for use by site license.