@inbook {604659,
	title = {Monetary Regimes to Cope with Volatile Commodity Export Prices: Two Proposals},
	booktitle = {Rethinking the Macroeconomics of Resource-Rich Countries },
	year = {2018},
	publisher = {CEPR},
	organization = {CEPR},
	address = {London},
	abstract = {What monetary regime should commodity-exporting developing countries adopt?\&nbsp; On the one hand, it is desirable to let the currency appreciate (depreciate) in response to positive (negative) terms of trade shocks.\&nbsp; Such accommodation is precluded if the exchange rate is fixed or if the CPI is targeted literally.\&nbsp; On the other hand, countries need some sort of nominal anchor.\&nbsp;\&nbsp; Monetary policy can be made automatically more counter-cyclical, judged by the criterion of currency appreciation in reaction to positive terms-of-trade shocks, under either of two regimes.\&nbsp;\&nbsp; Peggers can add the export commodity to a currency basket (CCB, for {\textquotedblleft}Currency-plus-Commodity Basket{\textquotedblright}).\&nbsp; Others can target Nominal Income instead of the CPI.},
	url = {https://scholar.harvard.edu/files/frankel/files/commoditymproposals2018cepr.pdf},
	author = {Jeffrey Frankel},
	editor = {Rabah Arezki and Raouf Boucekkine}
}
