How Persistent Are Shocks to World Commodity Prices?
Year: 1999
Type: article
Abstract: This paper examines the persistence of shocks to world commodity prices, using monthly IMF data on primary commodities between 1957-98. We find that shocks to commodity prices are typically long-lasting and the variability of the persistence of price shocks is quite wide. The paper also discusses the implications of these findings for national and international schemes to stabilize earnings from commodity exports and finds that if price shocks are long-lived, then the cost of stabilization schemes will likely exceed any associated smoothing benefits.
Source: IMF Staff Papers
DOI: 10.2139/ssrn.880607
Authors: Paul Anthony Cashin, Hong Liang, C. John McDermott
Institutions: International Monetary Fund, Reserve Bank of New Zealand
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W3122395053