Titlebar

Export bibliographic data
Literature by the same author
plus on the publication server
plus at Google Scholar

 

Should Commodity Exporters Peg to the Export Price?

Title data

Vogel, Lukas ; Hohberger, Stefan ; Herz, Bernhard:
Should Commodity Exporters Peg to the Export Price?
In: Review of Development Economics. Vol. 19 (August 2015) Issue 3 . - pp. 486-501.
ISSN 1467-9361
DOI: https://doi.org/10.1111/rode.12172

Abstract in another language

To account for the specific situation of commodity exporters, pegging to export prices (PEP) has been proposed elsewhere as an alternative to other conventional monetary regimes such as an exchange rate peg or inflation targeting. PEP is supposed to deliver automatic accommodation to terms-of-trade shocks, while retaining the credibility gain from a nominal anchor. This paper analyzes the PEP proposal in a dynamic general-equilibrium model and compares it with a standard Taylor rule, consumer price index (CPI)-level targeting and a nominal exchange rate peg. Judged by the degree of output stabilization, PEP performs very similar to CPI targeting for export demand as well as domestic demand shocks and underperforms in the case of shocks to the export price. The results suggest that PEP is not superior to conventional CPI targeting from a macroeconomic stabilization perspective.

Further data

Item Type: Article in a journal
Refereed: Yes
Institutions of the University: Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I
Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I > Chair Economics I - Univ.-Prof. Dr. Bernhard Herz
Result of work at the UBT: Yes
DDC Subjects: 300 Social sciences > 330 Economics
Date Deposited: 30 Nov 2017 08:09
Last Modified: 30 Nov 2017 08:09
URI: https://eref.uni-bayreuth.de/id/eprint/40598