Movements in countries’ exchange rates can substantially change the prices of goods faced by producers and consumers and thereby affect incentives to produce, consume, and trade goods. Exchange rate changes, however, might not be completely transmitted (passed through) to domestic prices....

Food prices across the world rose dramatically between 2006 and 2008. The causes of the price rise were complex, and the event has led to heightened concerns regarding the implications of rising food prices on the prevalence of food insecurity and household welfare, particularly in developing...