{
  "title": "Commodity Shocks and Exchange Rate Regimes: Implications for the Caribbean Commodity Exporters",
  "publication": "IMF Working Papers, April 23, 2021",
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  "summary": "Declining commodity prices during mid-2014-2016 posed significant challenges to commodity-exporting economies. The severe terms of trade shock associated with a sharp fall in world commodity prices have raised anew questions about the viability of pegged exchange rate regimes.",
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    {
      "heading": "Overview and Context",
      "content": "- Publication title: Commodity Shocks and Exchange Rate Regimes: Implications for the Caribbean Commodity Exporters\n- Authors: Ali J Al-Sadiq, Inci Ötker\n- Date: April 23, 2021\n- Series: Working Paper No. 2021/104\n- Issue: 104\n- Volume: 2021\n- Pages: 53\n- DOI: https://doi.org/10.5089/9781513582597.001\n- Stock No: WPIEA2021104\n- ISBN: 9781513582597\n- ISSN: 1018-5941"
    },
    {
      "heading": "Key findings and empirical focus",
      "content": "- Declining commodity prices during mid-2014-2016 posed significant challenges to commodity-exporting economies.\n- The severe terms of trade shock associated with a sharp fall in world commodity prices raised questions about the viability of pegged exchange rate regimes.\n- The COVID-19 pandemic and containment measures have been associated with:\n  - significant disruption in travel, tourism, and hospitality industry;\n  - added downward pressure on commodity prices;\n  - a sharp fall in foreign exchange earnings;\n  - depressed economic activity in most commodity exporters.\n- The paper reviews country experiences with different exchange rate regimes in coping with commodity price shocks.\n- Analytical methods used:\n  - event study techniques;\n  - panel vector autoregression techniques.\n- The paper analyzes, conceptually and empirically, policy and technical considerations in making exchange rate regime choices.\n- It discusses the supporting policies that should accompany a given regime choice to make that choice sustainable.\n- The paper offers lessons that could be helpful to the Caribbean commodity-exporters."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Commodities; Exchange rate adjustments; Exchange rate arrangements; Exchange rate flexibility; Exchange rates; Foreign exchange\n- Keywords: Africa; Caribbean; Caribbean commodity-exporter; commodity exporter; commodity shock; Exchange rate adjustments; Exchange rate arrangements; Exchange rate flexibility; Exchange rates; Global; I. commodity terms-of-trade Index; regime choice"
    },
    {
      "heading": "Research purpose and policy relevance",
      "content": "- Purpose:\n  - Review country experiences with different exchange rate regimes facing commodity price shocks.\n  - Explore the role of flexible exchange rates as a shock absorber.\n  - Analyze macroeconomic impact of adverse term-of-trade shocks under different regimes.\n- Policy relevance:\n  - Evaluates policy and technical considerations for exchange rate regime choices.\n  - Identifies supporting policies required to sustain a chosen regime.\n  - Provides lessons targeted to Caribbean commodity-exporters facing commodity price volatility and pandemic-related shocks.\n\nSource: IMF Working Papers — \"Commodity Shocks and Exchange Rate Regimes: Implications for the Caribbean Commodity Exporters\", Ali J Al-Sadiq and Inci Ötker, April 23, 2021, Working Paper No. 2021/104.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/04/23/commodity-shocks-and-exchange-rate-regimes-implications-for-the-caribbean-commodity-exporters-50346"
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    "Authors: Ali J Al-Sadiq, Inci Ötker",
    "Published: April 23, 2021",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513582597.001",
    "Publication title: Commodity Shocks and Exchange Rate Regimes: Implications for the Caribbean Commodity Exporters",
    "Authors: Ali J Al-Sadiq, Inci Ötker",
    "Date: April 23, 2021",
    "Series: Working Paper No. 2021/104",
    "Issue: 104",
    "Volume: 2021",
    "Pages: 53",
    "DOI: https://doi.org/10.5089/9781513582597.001",
    "Stock No: WPIEA2021104",
    "ISBN: 9781513582597",
    "ISSN: 1018-5941",
    "Declining commodity prices during mid-2014-2016 posed significant challenges to commodity-exporting economies.",
    "The severe terms of trade shock associated with a sharp fall in world commodity prices raised questions about the viability of pegged exchange rate regimes.",
    "The COVID-19 pandemic and containment measures have been associated with:",
    "The paper reviews country experiences with different exchange rate regimes in coping with commodity price shocks.",
    "Analytical methods used:",
    "The paper analyzes, conceptually and empirically, policy and technical considerations in making exchange rate regime choices.",
    "It discusses the supporting policies that should accompany a given regime choice to make that choice sustainable.",
    "The paper offers lessons that could be helpful to the Caribbean commodity-exporters.",
    "Subject: Commodities; Exchange rate adjustments; Exchange rate arrangements; Exchange rate flexibility; Exchange rates; Foreign exchange",
    "Keywords: Africa; Caribbean; Caribbean commodity-exporter; commodity exporter; commodity shock; Exchange rate adjustments; Exchange rate arrangements; Exchange rate flexibility; Exchange rates; Global; I. commodity terms-of-trade Index; regime choice",
    "Purpose:",
    "Policy relevance:",
    "**Working Paper**"
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