Will the Emergence of the Euro Affect World Commodity Prices?

Author/Editor:

Hong Liang ; John T. Cuddington

Publication Date:

December 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This study provides evidence that episodes of internal stability of exchange rates among the 11 Euro countries during 1957-98 were associated with periods of lower real commodity price volatility. These stabilizing effects are statistically significant for fertilizer, metals, petroleum, and cereals. A reasonable inference, therefore, is that the establishment of the Euro on January 1, 1999, should be expected to contribute to reduced volatility of world commodity prices, other things equal, although the impacts are likely to be modest.

Series:

Working Paper No. 00/208

Subject:

English

Publication Date:

December 1, 2000

ISBN/ISSN:

9781451874693/1018-5941

Stock No:

WPIEA2082000

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

32

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