How Persistent Are Shocks to World Commodity Prices? [electronic resource] / Hong Liang.
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TextSeries: IMF Working Papers; Working Paper ; No. 99/80Publication details: Washington, D.C. : International Monetary Fund, 1999Description: 1 online resource (54 p.)ISBN: 145185028X :ISSN: 1018-5941Subject(s): Commodity Prices | Confidence Interval | Confidence Intervals | Export Earnings | Median-Unbiased Estimation | Price Stabilization | Cameroon | Congo, Democratic Republic of the | Guinea | New Zealand | United KingdomAdditional physical formats: Print Version:: How Persistent Are Shocks to World Commodity Prices?Online resources: IMF e-Library | IMF Book Store 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.
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.
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