We develop a semi-structural new-Keynesian open-economy model, with separate food and non-food inflation dynamics, for … forecasting and monetary policy analysis in low-income countries and apply it to Kenya. We use the model to run several policy …-relevant exercises. First, we filter international and Kenyan data (on output, inflation and its components, exchange rates and interest …

Indian food and fuel inflation has remained high for several years, and second-round effects on core inflation are … model of the Indian economy, which incorporates pass-through from headline inflation to core inflation. The results indicate … that India's inflation is highly inertial and persistent. Due to second-round effects, the gap between headline inflation …

developing countries. We define first-round effects as changes in headline inflation that, holding core inflation constant, help …

dynamics of the economy, the design ofmonetary policy, and the properties of inflation at different levels of development. A … calibratedversion of the model encompasses both rich and poor countries and broadly replicates theproperties of inflation across the … nearcomplete)stabilization of sticky-price non-food inflation, despite the presence of a foodsubsistencethreshold. Subsistence …

significant differences in the propagation of external shocks between the LICs that target monetary aggregates or inflation …

in the analysis of monetary policy in low-income countries (LICs), with an application to Kenya. We provide a general … target misses in terms of structural shocks (aggregate demand, policy, shocks tomoney demand, etc). In the case of Kenya, we …