dealing with commodity price uncertainty - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook dealing with commodity price uncertainty write by Panos Varangis. This book was released on 1996. dealing with commodity price uncertainty available in PDF, EPUB and Kindle.
Dealing with Commodity Price Uncertainty
Dealing with Commodity Price Uncertainty - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Dealing with Commodity Price Uncertainty write by Panayotis N. Varangis. This book was released on 1999. Dealing with Commodity Price Uncertainty available in PDF, EPUB and Kindle. October 1996 Market liberalization has increased the appeal of commodity derivative instruments (such as futures, options, swaps, and commodity-linked notes) as a means of managing price uncertainty. In many emerging countries both government and the private sector are increasingly using these instruments. Liberalization in commodity markets has brought profound changes in the way price risks are allocated and managed in commodity subsectors. Price risks are increasingly allocated to private traders and farmers rather than absorbed by the government. The success of market reform depends on the ability of the emerging private sector to make full use of the available range of modern commodity marketing, price risk management (such as futures, options, swaps, commodity bonds, and so on), and financing instruments. Because farmers do not generally have direct access to these instruments, intermediaries must be developed. Larger private traders and banks are in the best position to become these intermediaries. Preconditions needed for accessing modern commodity marketing, price risk management, and financing instruments are: * Creating an appropriate legal, regulatory, and institutional framework. * Reducing government intervention that crowds out private sector involvement. * Providing training and raising awareness. * Improving creditworthiness and reducing performance risk. The use of commodity derivative instruments to hedge commodity price risk is not new among developing countries. The private sector in many Asian and Latin American countries, for example, have been using commodity futures and options for some time. More recently, commodity derivative instruments are being used increasingly in several African countries and many economies in transition. And several developing and transition economies have sought to establish commodity derivative exchanges. This paper - a product of the Commodity Policy and Analysis Unit, International Economics Department - is part of a larger effort in the department to investigate alternative price risk management and finance systems under market liberalization.
Dealing with Commodity Price Uncertainty
Dealing with Commodity Price Uncertainty - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Dealing with Commodity Price Uncertainty write by Panos Varangis. This book was released on 2016. Dealing with Commodity Price Uncertainty available in PDF, EPUB and Kindle. Market liberalization has increased the appeal of commodity derivative instruments (such as futures, options, swaps, and commodity-linked notes) as a means of managing price uncertainty. In many emerging countries both government and the private sector are increasingly using these instruments. Liberalization in commodity markets has brought profound changes in the way price risks are allocated and managed in commodity subsectors. Price risks are increasingly allocated to private traders and farmers rather than absorbed by the government.The success of market reform depends on the ability of the emerging private sector to make full use of the available range of modern commodity marketing, price risk management (such as futures, options, swaps, commodity bonds, and so on), and financing instruments. Because farmers do not generally have direct access to these instruments, intermediaries must be developed. Larger private traders and banks are in the best position to become these intermediaries.Preconditions needed for accessing modern commodity marketing, price risk management, and financing instruments are:Creating an appropriate legal, regulatory, and institutional framework.Reducing government intervention that crowds out private sector involvement.Providing training and raising awareness.Improving creditworthiness and reducing performance risk.The use of commodity derivative instruments to hedge commodity price risk is not new among developing countries. The private sector in many Asian and Latin American countries, for example, have been using commodity futures and options for some time. More recently, commodity derivative instruments are being used increasingly in several African countries and many economies in transition. And several developing and transition economies have sought to establish commodity derivative exchanges.This paper - a product of the Commodity Policy and Analysis Unit, International Economics Department - is part of a larger effort in the department to investigate alternative price risk management and finance systems under market liberalization.
The Effects on Growth of Commodity Price Uncertainty and Shocks
The Effects on Growth of Commodity Price Uncertainty and Shocks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Effects on Growth of Commodity Price Uncertainty and Shocks write by Jan Dehn. This book was released on 2000. The Effects on Growth of Commodity Price Uncertainty and Shocks available in PDF, EPUB and Kindle. The author estimates the effects on growth of commodity price shocks, and uncertainty within an established empirical growth model. Ex-post shocks, and ex-ante uncertainty have been treated in the empirical literature as if they were synonymous. But they are distinct concepts, and it is both theoretically, and empirically inappropriate to treat them as synonymous. He shows that the interaction between policy, and aid is robust to the inclusion of variables capturing commodity price movements. More important, his approach departs in three ways from earlier empirical studies of the subject: 1) It deals with issues of endogeneity, without incurring an excessive loss of efficiency. 2) It defines the dependent variable to allow an assessment of the longer-term implications of temporary trade shocks. 3) It imposes no priors on how commodity price movements affect growth, but compares and contrasts a range of competing shock, and uncertainty specifications. The author resolves the disagreement about the long-run effect of positive shocks on growth, finding that positive shocks have no long-run impact on growth (that windfalls from trade shocks do not translate into sustainable increases in income). He shows that negative shocks have large, highly significant, and negative effects on growth, but that commodity price uncertainty does not affect growth.
The Effects on Growth of Commodity Price Uncertainty and Shocks
The Effects on Growth of Commodity Price Uncertainty and Shocks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Effects on Growth of Commodity Price Uncertainty and Shocks write by Dehn. This book was released on 2013. The Effects on Growth of Commodity Price Uncertainty and Shocks available in PDF, EPUB and Kindle.
