1999Unpublished venueRequires access

Using markets to deal with commodity price volatility

Donald F. Larson, Panos Varangis

Open publisher page 8 citations

Abstract

Commodities are often at the heart of local and sometimes national economies. Commodity prices are notoriously volatile, creating instability and uncertainty for commodity-dependent developing countries. Commodity price instability undermines economic growth and skews the distribution of income. As a result, nearly every government has tried to manage commodity price risks. This Note discusses different sets of commodity pricing policies and the barriers to their risk management.

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What this paper is about

Commodities are often at the heart of local and sometimes national economies. Commodity prices are notoriously volatile, creating instability and uncertainty for commodity-dependent developing countries. Commodity price instability undermines economic growth and skews the distribution of income. As a result, nearly every government has tried to manage commodity price risks. This Note discusses different sets of commodity pricing policies and the barriers to their risk management.

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OpenAlex reports 8 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

Commodities are often at the heart of local and sometimes national economies. Commodity prices are notoriously volatile, creating instability and uncertainty for commodity-dependent developing countries. Commodity price instability undermines economic growth and skews the distribution of income. As a result, nearly every government has tried to manage commodity price risks. This Note discusses different sets of commodity pricing policies and the barriers to their risk management.

Key concepts: Commodity, Volatility (finance), Economics, Commodity swap, Contango, Monetary economics, Financial economics, Market economy

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