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...

Intro -- Contents -- I. INTRODUCTION -- II. THE BASELINE MODEL -- III. EQUILIBRIUM -- IV. ECONOMIC INTEGRATION AND DIVERSIFICATION -- V. RIGID WAGES -- VI. CONCLUSION -- APPENDIX: THE MODEL -- REFERENCES.