at Google ScholarTitle data
Vogel, Lukas ; Hohberger, Stefan ; Herz, Bernhard:
Should Commodity Exporters Peg to the Export Price?
In: Review of Development Economics.
Vol. 19
(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 - International Economics and Finance Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance > Chair Economics I - International Economics and Finance - 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: | 20 Oct 2022 10:44 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/40598 |