Monetary Policy and Commodity Prices in Turbulent Times

The global economy is in turmoil. In this scenario, monetary policies around the world face strong challenges. Sailing through quiet waters has been pleasant. As we know, the stable and prosperous performance of the world economy in recent years has partly been the result of sound monetary policies. Now, during difficult times, monetary policy should contribute to make the adjustment less costly and lay the foundations for a sound, persistent recovery. Macroeconomic management in emerging market economies have improved significantly in the past several years, owing part of this to the large increase in commodity prices, but also to fiscal consolidation and the commitment to price stability. This has increased the resilience of emerging economies to global economic turbulences.