On the Origins of the Fleming-Mundell Model

Forty years ago, Marcus Fleming and Robert Mundell developed independent models of macroeconomic policy in open economies. Why do we link the two, and why do we call the result the Mundell-Fleming, rather than Fleming-Mundell model? Copyright 2003, International Monetary Fund

Commodity Prices as a Leading Indicator of Inflation

This paper studies the value of broad commodity price indexes as predictors of consumer price inflation in the G-7 industrial countries. After an introduction, the paper discusses the theoretical relationship between commodity and consumer prices and the conditions under which, in general, one would expect commodity prices to be a leading indicator of inflation. It then presents tests of the relationships between conventional broad indexes of commodity prices and consumer prices, and uses the data on individual commodities to generate the optimum weights in a commodity price index for forecasting G-7 inflation. We find that commodity and consumer prices are not co-integrated; the hypothesis that there is a reliable long-run relationship between the level of commodity prices and the level of consumer prices may be rejected. There is a tendency for changes in commodity prices to lead those in consumer prices, at least when the data are denominated in a broad index of major-country currencies. However, although the inclusion of commodity prices significantly improves the in-sample fit of regressions of an aggregate (multi-country) consumer price index, the results may not be sufficiently stable to improve post-sample forecasts. Estimated alternative commodity price indexes, in which the weights are chosen so as to minimize the residual variance in aggregate inflation regressions, track the behavior of the aggregate CPI reasonably well in-sample. However, the estimated indexes work only moderately well in post-sample predictions, and they do not appear to offer significant advantages over the conventional export weighted index. Perhaps the most important result is that turning points in commodity-price inflation frequently precede turning points in consumer-price inflation for the large industrial countries as a group.

Commodity Prices and Inflation: Evidence From Seven Large Industrial Countries

This paper examines the relationships between movements in primary commodity prices and changes in inflation in the large industrial countries. It begins by developing a two-country model in order to examine the theoretical effects of monetary, fiscal, and supply-side disturbances on commodity and manufactures prices and on exchange rates. It is shown that 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. Non-monetary shocks generally weaken these relationships, but such disturbances may cancel out for broad indexes covering a wide range of commodities. Country-specific commodity price indexes are developed for the major industrial countries. The weights assigned to different commodities vary substantially across countries. Nonetheless, when the indexes are expressed in a common currency, they tend to be highly correlated over time, except when sharp movements occur in certain commodity prices. The major source of contrast across countries in the behavior of the indexes derives from exchange rate movements. Several empirical tests broadly support the conclusions of the theoretical model, with relatively few differences across countries. Three main tendencies may be cited. First, low inflation in industrial countries has tended to be associated with low levels of commodity prices, and conversely; commodity-price levels are cointegrated with consumer-price inflation rates. Second, there has been some tendency for movements in commodity prices to precede changes in general inflation rates by a few months, although it is not clear whether this tendency is strong enough to be a reliable aid in forecasting the rate of inflation. Third, there s a strong and fairly reliable tendency for turning points in general inflation rates. Commodity prices thus appear to contribute to predictions of turning points in inflation, predictions of inflation rates but more strongly to predictions of turning points in inflation.

A Strategic Approach to Agricultural Research Program Planning in Sub-Saharan Africa

Research and Development/Tech Change/Emerging Technologies, Downloads May 2008-July 2009: 13,

A Strategic Approach to Agricultural Research Program Planning in Sub-Saharan Africa

Recent studies have shown that agricultural research can have high payoffs in Africa, but impact depends on how well technology fits with evolving needs and capacity in the agricultural sector and the rest of the economy. Structural adjustment policies (e.g., market liberalization, currency devaluation) and political change are transforming user demands for new technology and the economic environment in which technology must perform. The challenge is how to design agricultural research as a strategic input to promote broad-based economic growth, structural transformation, and food security in the increasingly market-driven, but fragile, economies of Africa.Food Security, Food Policy, Agricultural Research, Research and Development/Tech Change/Emerging Technologies, Downloads May 2008-July 2009: 44, Q18,

Uma Abordagem Estratégica Sobre e Planificação de Programas de Pesquisa Agrícola na África Sub-Sahariana

Crop Production/Industries, Downloads July 2008-June 2009: 5,

Une approche stratégique pour la planification du programme de recherche agricole en Afrique sub-saharienne

Des études récentes ont montré que la recherche agricole en Afrique peut avoir une rentabilité élevée, mais son impact dépend de l'adaptabilité des nouvelles technologies aux capacités et aux besoins changeants du secteur agricole et du reste de l'économie. Les politiques d'ajustement structurel (ex : la libéralisation des marchés et la dévaluation monétaire) et les changements politiques sont en train de transformer la demande de nouvelles technologies et l'environnement économique au sein duquel ces technologies doivent opérer. Le défi est de concevoir la recherche agricole comme un intrant stratégique qui encourage une croissance économique à base élargie, la transformation structurelle de l'économie et la sécurité alimentaire dans des économies africaines de plus de plus orientées vers la production pour la commercialisation mais qui restent encore fragiles.food security, food policy, agricultural research, Research and Development/Tech Change/Emerging Technologies, Downloads June 2008-June 2009: 11, Q18,

Une approche stratégique pour la planification du programme de recherche agricole en Afrique sub-saharienne

Research and Development/Tech Change/Emerging Technologies, Downloads July 2008-June 2009: 6,

Spatial variation in direct and indirect contact rates at the wildlife-livestock interface for informing disease management

Little is known about disease transmission relevant contact rates at the wildlife-livestock interface and the factors shaping them. Indirect contact via shared resources is thought to be important but remains unquantified in most systems, making it challenging to evaluate the impact of livestock management practices on contact networks. Free-ranging wild pigs (Sus scrofa) in North America are an invasive, socially-structured species with an expanding distribution that pose a threat to livestock health given their potential to transmit numerous livestock diseases, such as pseudorabies, brucellosis, trichinellosis, and echinococcosis, among many others. Our objective in this study was to quantify the spatial variations in direct and indirect contact rates among wild pigs and cattle on a commercial cow-calf operation in Florida, USA. Using GPS data from 20 wild pigs and 11 cattle and a continuous-time movement model, we extracted three types of spatial contacts between wild pigs and cattle, including direct contact, indirect contact in the pastoral environment (unknown naturally occurring resources), and indirect contact via anthropogenic cattle resources (feed supplements and water supply troughs). We examined the effects of sex, spatial proximity, and cattle supplement availability on contact rates at the species level and characterized wild pig usage of cattle supplements. Our results suggested daily pig-cattle direct contacts occurred only occasionally, while a significant number of pig-cattle indirect contacts occurred via natural resources distributed heterogeneously across the landscape. At cattle supplements, more indirect contacts occurred at liquid molasses than water troughs or molasses-mineral block tubs due to higher visitation rates by wild pigs. Our results can be directly used for parameterizing epidemiological models to inform risk assessment and optimal control strategies for controlling transmission of shared diseases

Optimising response to an introduction of African swine fever in wild pigs

African swine fever virus (ASFv) is a virulent pathogen that threatens domestic swine industries globally and persists in wild boar populations in some countries. Persistence in wild boar can challenge elimination and prevent disease-free status, making it necessary to address wild swine in proactive response plans. In the United States, invasive wild pigs are abundant and found across a wide range of ecological conditions that could drive different epidemiological dynamics among populations. Information on the size of the control areas required to rapidly eliminate the ASFv in wild pigs and how this area should change with management constraints and local ecology is needed to optimize response planning. We developed a spatially explicit disease transmission model contrasting wild pig movement and contact ecology in two ecosystems in Southeastern United States. We simulated ASFv spread and determined the optimal response area (reported as the radius of a circle) for eliminating ASFv rapidly over a range of detection times (when ASFv was detected relative to the true date of introduction), culling capacities (proportion of wild pigs in the culling zone removed weekly) and wild pig densities. Large radii for response areas (14 km) were needed under most conditions but could be shortened with early detection (≤ 8 weeks) and high culling capacities (≥ 15% weekly). Under most conditions, the ASFv was eliminated in less than 22 weeks using optimal control radii, although ecological conditions with high rates of wild pig movement required higher culling capacities (≥ 10% weekly) for elimination within 1 year. The results highlight the importance of adjusting response plans based on local ecology and show that wild pig movement is a better predictor of the optimal response area than the number of ASFv cases early in the outbreak trajectory. Our framework provides a tool for determining optimal control plans in different areas, guiding expectations of response impacts, and planning resources needed for rapid elimination