Managing Commodity Booms--and BustsWorld Bank, 1995 - 22 pages In developing countries dependent on a few commodities for their exports, booming commodity markets can be beneficial or detrimental depending how they manage the windfalls. Two key problems need to be addressed: the fluctuations in income, and transitory bonanzas in foreign exchange earnings. This second effect, in particular, is likely to cause the exchange rate to appreciate above its long-term sustainable level. - Foreword. |
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Page viii
... restrictions may lead to further appreciation of the exchange rate . Learning from experience In the past , governments introduced various policies to manage booms and avoid the onset of Dutch disease . They have followed prudent fiscal ...
... restrictions may lead to further appreciation of the exchange rate . Learning from experience In the past , governments introduced various policies to manage booms and avoid the onset of Dutch disease . They have followed prudent fiscal ...
Page ix
... restrictions saw long - term beneficial results from commodity booms . Other , complementary policies have also been ... ( restrictions on investing abroad ) and import controls should be reduced . Policymakers shou'd consider taking ...
... restrictions saw long - term beneficial results from commodity booms . Other , complementary policies have also been ... ( restrictions on investing abroad ) and import controls should be reduced . Policymakers shou'd consider taking ...
Page 9
... restrictions may lead to further appreciation of the exchange rate . Such restrictions may also skew income distribution . In Kenya after the 1976-79 coffee boom , import and capital controls increased rents to suppliers of capital ...
... restrictions may lead to further appreciation of the exchange rate . Such restrictions may also skew income distribution . In Kenya after the 1976-79 coffee boom , import and capital controls increased rents to suppliers of capital ...
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agricultural Analysis Unit benefits boom ends booming commodity booming sector booms and busts capital controls central bank claimants cocoa cocoa prices coffee boom coffee exporters Colombia Commodity boom bonds commodity exports Commodity Policy commodity-exporting countries copper prices costs CĂ´te d'Ivoire current US dollars developing countries Dutch disease effects export commodity export revenues export taxes external debt farmers financial markets fiscal policies fluctuations foreign exchange inflows foreign reserves government revenues Groundnut oil import restrictions income International Economics Department investment LEARNING FROM EXPERIENCE manage booms manage commodity ments Metals and minerals monetary base monetary policies nonbooming oil prices options palm oil percent Policy and Analysis policymakers price declines price rises primary commodity prices private sector problems production programs real exchange rate reduced foreign debt Revenue stabilization funds risk management rubber savings in foreign short-term price Sub-Saharan Africa swaps Tanzania trade windfall gains windfall profit tax windfall revenues windfall tax World Bank