Managing Commodity Booms-And Busts

摘要: This document pertains to boom commodity markets which can be a bane or blessing. If exporting countries adopt the wrong policies and strategies, they leave their economies in worse shape than before boom. The of developing are heavily dependent on commodities. One way manage price shock is create stabilization fund. By saving resources years, governments reduce need cut spending leaner times. Reserves funds, however, should treated as foreign reserves. Producers main group When some prices increase sharply, find it difficult lower producer's often subsidize them after over all conclusion not commit long term that will unsustainable when fizzles.