 On the Macroeconomic Management of Food Price Shocks in Low-income Countries-super- †Journal of African Economies, 2011, vol. 20, issue suppl_1, -i99 Abstract: Global food prices have risen sharply in recent years and have become more volatile. In this paper, I examine how these developments are transmitted to domestic food and non-food markets in low-income economies and consider the options available to policymakers concerned with managing the macroeconomic consequences of global food price shocks. I first review the simple economics of the transmission of global food price movements to food and non-food prices in low-income countries. I then use a simple dependent-economy model to illustrate the real macroeconomic and distributional effects of alternative fiscal and trade policy responses to food shocks and how these are determined by the structural characteristics of low-income economies. In the final section, I consider how food price shocks impact on the aggregate price level and, in particular, the implications of increased food price volatility has for the design and conduct of monetary policy in low-income economies. Copyright 2011 , Oxford University Press. Date: 2011 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:jafrec:v:20:y:2011:i:suppl_1:p:-i99 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of African Economies is currently edited by Francis Teal More articles in Journal of African Economies from Centre for the Study of African Economies Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
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