@inbook {445091,
	title = {How to Cope with Volatile Commodity Export Prices: Three Proposals},
	booktitle = {Rethinking the Macroeconomics of Resource-Rich Countries},
	year = {2018},
	note = {Keynote address, Bank of Algeria, Algiers, May 28-29, 2016.},
	publisher = {Centre for Economic Policy Research},
	organization = {Centre for Economic Policy Research},
	address = {London},
	abstract = {Countries that specialize in commodities have in recent years been hit by high volatility in world prices for their exports. This paper suggests three ways that commodity-exporters can make themselves less vulnerable. (1) They can use option contracts to hedge against short-term declines in the commodity price without giving up the upside, as Mexico has shown. (2) Commodity-linked bonds can hedge longer-term risk, and often have a natural ultimate counter-party in multinational corporations that depend on the commodity as an input. (3) The well-documented pro-cyclicality of fiscal policy among commodity exporters can be reduced by insulating official forecasters against optimism bias, as Chile has shown. },
	url = {https://scholar.harvard.edu/files/frankel/files/commodity3proposals2018cepr.pdf},
	author = {J. Frankel},
	editor = {Rabah Arezki and Raouf Boucekkine.}
}
