Commodity price stabilisation: macroeconomic impacts and policy options
نویسنده
چکیده
A macroeconometric simulation study is undertaken to evaluate the impact of commodity price stabilisation (CPS) schemes for the export tree crop industry in Papua New Guinea. The findings suggest that there is a negligible level of favourable macroeconomic impacts of CPS. Contrary to the expectation, CPS adversely affects the stability of monetary and external sectors (BOP). CPS policy has failed to stabilise the macroeconomy. The price stabilisation policies are no longer appropriate from the macroeconomic point of view. Technical change, futures market and rural savings are the possible alternative policy options to manage the price risk. © 2000 Elsevier Science B.V. All rights reserved.
منابع مشابه
Effects of U.S. Macroeconomic Shocks on International Commodity Prices: Emphasis on Price and Exchange Rate Pass-through Effects
Using a structural VAR with block exogeneity, diagonality and identifying restrictions, this paper analyzes: first, the macroeconomic linkages among the oil price, U.S. output, interest rate, money supply, general price level and exchange rate and second, the relationships of the macroeconomic variables with the price indices of ten international nonfuel commodity groups. By assuming the block ...
متن کاملThe Impacts of Monetary Policy on Macroeconomic Variables Assuming the Collateral Constraint
This study aimed to examine the effects of monetary policy on macroeconomic variables with regard to the collateral constraint. For this purpose, a dynamic stochastic general equilibrium (DSGE) was developed for Iran’s economic status. Two scenarios were considered as to account for the behavior of the central bank. In the first scenario, the monetary rule is modeled according to the GDP gap an...
متن کاملCommodity price shocks and imperfectly credible macroeconomic policies
In this paper, we analyze how lack of credibility and transparency of monetary and fiscal policies undermines the effectiveness of macroeconomic policies to isolate the economy from commodity price fluctuations. We develop a general equilibrium model for a commodity exporting economy where macro policies are conducted through rules. We show that the responses of output, aggregate demand, and in...
متن کاملThe Theory of Commodity Price Stabilisation Rules: Welfare Impacts and Supply Responses*
Commodity price stabilisation schemes are again topical, this time as a result of pressure from UNCTAD for an integrated programme on commodities as part of the 'New International Order'. Despite the long history of interest in the subject and its evident importance for developing countries the conventional analysis of the impact of price stabilisation is remarkably simplistic.^ The theory was ...
متن کامل