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 …

Inflation targeting (IT) is a relatively new monetary policy framework for low-income countries (LICs). The limited … this gap. It finds that inflation targeting appears to be associated with lower inflation and inflation volatility. At the …, where building credibility of monetary policy is difficult and minimizing output costs of reducing inflation is imperative …

for establishing the other building blocks of an inflation targeting framework. It argues that strengthening the … effectiveness of the current monetary policy framework will facilitate the adoption of inflation targeting over time. …

effectiveness of the Central Bank of Congo in controlling inflation, despite a rapid policy response to inflation shocks. Options …

This paper surveys the evidence on the effectiveness of monetary transmission in low-income countries. It is hard to …

low long-run inflation objective, operational independence for the People's Bank of China (PBC) with formal strategic … interest rate fluctuations). We argue that anchoring monetary policy with an explicit inflation objective would be the most … reliable way for the PBC to tie down inflation expectations, and thereby enable monetary policy to make the best contribution …

sensible forecasting properties. After developing a benchmark model without financial-real linkages, we introduce such linkages …

produce both plausible dynamics and sensible forecasting properties. We show how the model can be used to construct efficient …