Propagation of Shocks to Food and Energy Prices: an International Comparison
AbstractThe present paper analyzes propagation of shocks to food and energy prices in 46 countries with data from the period 1999-2010. The empirical evidence suggests that in only one of the countries considered, a shock to the price of either energy or food shows no propagation to the prices of the goods and services included in the core inflation measure. In general, the propagation effect of food price shocks is larger than that of energy price shocks. Emerging economies are more affected by propagation than advanced ones. The results advocate that policy makers concerned with price stability should pay special attention to shocks affecting domestic food prices.
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Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 648.
Date of creation: Dec 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-01-25 (Agricultural Economics)
- NEP-ALL-2012-01-25 (All new papers)
- NEP-CBA-2012-01-25 (Central Banking)
- NEP-ENE-2012-01-25 (Energy Economics)
- NEP-MAC-2012-01-25 (Macroeconomics)
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- Pierre-Richard Agénor & Luiz A. Pereira da Silva, 2013. "Rethinking Inflation Targeting: A Perspective from the Developing World," Centre for Growth and Business Cycle Research Discussion Paper Series 185, Economics, The Univeristy of Manchester.
- José de Gregorio, 2012. "Commodity Prices, Monetary Policy and Inflation," Working Papers wp359, University of Chile, Department of Economics.
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