01813cas a2200241 a 4500 AALejournalIMF010031 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451958973 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Commodity Prices and Inflation : Evidence from Seven Large Industrial Countries. Washington, D.C. : International Monetary Fund, 1989. 1 online resource (84 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students A two-country theoretical model is presented, showing the effects of monetary, fiscal, and supply-side disturbances on prices of primary commodities and manufactured goods, and on exchange rates. If monetary shocks dominate, then commodity prices should lead general price movements, and the level of commodity prices should be correlated with the general inflation rate. Country-specific commodity price indexes are developed for the major industrial countries. Several empirical tests broadly support the conclusions of the model. Commodity price levels tend to be cointegrated with consumer-price inflation rates. Commodity price movements contribute weakly to predictions of inflation rates but more strongly to predictions of turning points in inflation. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/072 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/072/001.1989.issue-072-en.xml IMF e-Library