Inflation Pressures and Monetary Policy Options in Emerging and Developing Countries - A Cross Regional Perspective

80 Pages Posted: 11 Mar 2009

See all articles by Karl Habermeier

Karl Habermeier

International Monetary Fund (IMF)

Inci Otker-Robe

International Monetary Fund (IMF) - Monetary and Capital Markets Department; World Bank

Luis I Jácome

International Monetary Fund (IMF)

Alessandro Giustiniani

International Monetary Fund (IMF) - Monetary and Financial Systems Department; Bank of Italy - Research Department

Kotaro Ishi

International Monetary Fund (IMF)

David Vávra

International Monetary Fund (IMF)

Turgut Kisinbay

International Monetary Fund (IMF)

Francisco Vazquez

International Monetary Fund

Date Written: Janurary 2009

Abstract

This paper analyzes the monetary policy response to rising inflation in emerging and developing countries associated with the food and oil price shocks in 2007 and the first half of 2008. It reviews inflation developments in a sample of countries covering all regions and a broad range of monetary and exchange rate policy regimes; discusses the underlying causes of inflation; provides a synthesis of policy responses taken against the background of the conflicting objectives and trade-offs, the uncertainties regarding the nature of the shocks, and the additional challenges brought on by the global financial turmoil; and presents considerations for policy.

Keywords: Monetary policy, Inflation, Emerging markets, Developing countries, Exchange rate regimes, External shocks, Oil prices, Inflation targeting, Central banks

Suggested Citation

Habermeier, Karl and Ötker-Robe, İnci and Jácome, Luis I and Giustiniani, Alessandro and Ishi, Kotaro and Vávra, David and Kisinbay, Turgut and Vazquez, Francisco, Inflation Pressures and Monetary Policy Options in Emerging and Developing Countries - A Cross Regional Perspective (Janurary 2009). IMF Working Papers, Vol. , pp. 1-78, 2009. Available at SSRN: https://ssrn.com/abstract=1356436

Karl Habermeier (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

İnci Ötker-Robe

International Monetary Fund (IMF) - Monetary and Capital Markets Department ( email )

United States
202 623-7000 (Phone)
202 623-4661 (Fax)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Luis I Jácome

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Alessandro Giustiniani

International Monetary Fund (IMF) - Monetary and Financial Systems Department ( email )

Washington, DC
United States

Bank of Italy - Research Department ( email )

Via Nazionale 91
00184 Roma
Italy

Kotaro Ishi

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

David Vávra

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Turgut Kisinbay

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Francisco Vazquez

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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