We develop a tractable small open-economy model to study the first-round effects of international food price shocks in … developing countries. We define first-round effects as changes in headline inflation that, holding core inflation constant, help … implement relative price adjustments. The model features three goods (food, a generic traded good and a non-traded good …

We develop a semi-structural new-Keynesian open-economy model, with separate food and non-food inflation dynamics, for …-relevant exercises. First, we filter international and Kenyan data (on output, inflation and its components, exchange rates and interest … (or gaps)—including for the international and domestic relative price of food. Second, we use the filtration exercise to …

-related pressures, and the medium run impact on competitiveness and growth. The impact on inflation and the real exchange rate could be …

, Uganda (both de jure money targeters), and Ghana (a de jure inflation targeter), and compare the de facto adherence to …