Will the Emergence of the Euro Affect World Commodity Prices?

December 1, 2000

Preview Citation

Format: Chicago

Hong Liang, and John T. Cuddington Will the Emergence of the Euro Affect World Commodity Prices?, (USA: International Monetary Fund, 2000) accessed November 21, 2024

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.

Subject: Agricultural commodities, Commodities, Commodity price fluctuations, Commodity prices, Exchange rates, Foreign exchange, Prices

Keywords: Agricultural commodities, Commodity flow, Commodity index, Commodity price, Commodity price fluctuations, Commodity prices, Commodity volatility measure, Commodity volatility variable, Euro, Exchange rate regimes, Exchange rate volatility, Exchange rates, Global, Price data, Price series, SDR exchange rate, SDR rate, SDR volatility, U.S. dollar, Volatility, Volatility measure, Volatility variable, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/208
Stock No:

WPIEA2082000
ISBN:

9781451874693
ISSN:

1018-5941

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