Cover IMF Working Papers
Global Food Price Inflation and Policy Responses in Central Asia
Author: International Monetary Fund
Series:
IMF Working Papers
Volume/Issue:
Volume 2012: Issue 086
Language:
English
Publication Date:
01 Mar 2012
DOI:
https://doi.org/10.5089/9781475502497.001
ISBN:
9781475502497
ISSN:
1018-5941
Pages:
26
Keywords:
WP; price; food; headline inflation
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper examines the implications of elevated global food prices for inflation in select Central Asian economies - Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan. The findings suggest that global food inflation has significant short-run effects that build over time. Inflation outcomes simulated under alternative global wheat price assumptions underscore these vulnerabilities, and suggest that sustained administrative measures are unlikely to prove effective. In line with structural economic features, the interest rate channel of monetary policy is found to be limited, arguing for a broad policy strategy to control more expansive inflationary pressures. Looking ahead, measures to enhance supply responses, deepen domestic financial markets, develop adequate social safety nets, and increase central bank independence are warranted.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund