# Policies to Cope with Commodity Volatility ## expand\_more “[Restructuring the Debt of African Commodity-Exporters](https://www.jeffrey-frankel.com/2023/04/28/restructuring-debt-of-african-commodity-exporters/),” condensed as [“Debt Restructuring for Commodity-Exporters](https://www.project-syndicate.org/commentary/commodity-bonds-help-indebted-countries-hedge-against-price-volatility-by-jeffrey-frankel-2023-04?barrier=accesspaylog),” *Project Syndicate*, April 2023. “[The Currency-Plus-Commodity Basket: A Proposal for Exchange Rates in Oil-Exporting Countries to Accommodate Trade Shocks Automatically​](/file_url/509)” 2019. [Short abstract](/file_url/564). In [*Institutions and Macroeconomic Policies in Resource-Rich Arab Economies*](https://global.oup.com/academic/product/institutions-and-macroeconomic-policies-in-resource-rich-arab-economies-9780198822226?cc=us&lang=en&)*,* edited by Kamiar Mohaddes, Jeffrey Nugent, and Hoda Selim (Oxford: Oxford University Press), Chapter 6, pp.149-182. [Abstract](/publications/%E2%80%9C-currency-plus-commodity-basket-exchange-rate-proposal-make-monetary-policy). [HKS RWP17-034](https://research.hks.harvard.edu/publications/workingpapers/citation.aspx?PubId=12797&type=FN&PersonId=15); [CID WP no. 333](https://www.hks.harvard.edu/centers/cid/publications/faculty-working-papers/currency-plus-commodity-basket). (Appendix: [IMF Article IVs in Gulf countries](/file_url/507).) Summarized in “[A new exchange rate regime for oil-exporting countries](http://theforum.erf.org.eg/2017/12/12/new-exchange-rate-regime-oil-exporting-countries/),” *The Forum,* [ERF](http://erf.org.eg/) [Policy Portal](http://theforum.erf.org.eg/affiliates/jeffrey-frankel/), Dec. 2017; and in [Policy Brief No. 26](http://erf.org.eg/publications/currency-plus-commodity-basket-a-proposal-for-a-new-exchange-rate-arrangement-for-gulf-oil-exporting-countries/), June 2017, [Economic Research Forum](http://erf.org.eg/publication_cat/working-paper-series/) (Cairo). "[How to Cope with Volatile Commodity Export Prices: Three Proposals](/publications/how-cope-volatile-commodity-export-prices-four-proposals-0)," In: R Arezki and R. Boucekkine, editors, [*Rethinking the Macroeconomics of Resource-Rich Countries*](https://cepr.org/system/files/publication-files/60153-rethinking_the_macroeconomics_of_resource_rich_countries.pdf)*.* (London: Centre for Economic Policy Research), 2018. [Publisher's Version](/file_url/518) [Abstract](/publications/how-cope-volatile-commodity-export-prices-four-proposals-0) "[Monetary Regimes to Cope with Volatile Commodity Export Prices: Two Proposals](/publications/monetary-regimes-cope-volatile-commodity-export-prices-two-proposals)," In: R. Arezki, R. Boucekkine, editros, [*Rethinking the Macroeconomics of Resource-Rich Countries*](https://cepr.org/system/files/publication-files/60153-rethinking_the_macroeconomics_of_resource_rich_countries.pdf) (London: CEPR), 2018. [Publisher's Version](/file_url/516) [Abstract](/publications/monetary-regimes-cope-volatile-commodity-export-prices-two-proposals). "[How to Cope with Volatile Commodity Export Prices: Four Proposals](/file_url/470)” ([pdf](/file_url/471)) Oct. 2017; HKS [RWP17-033](https://www.hks.harvard.edu/publications/how-cope-volatile-commodity-export-prices-four-proposals-0); [CID](https://www.hks.harvard.edu/centers/cid/publications/faculty-working-papers) WP [335, July 2017](https://www.hks.harvard.edu/centers/cid/publications/faculty-working-papers/volatile-commodity-export-prices). Keynote address, Bank of Algeria, Algiers, May 28-29, 2016. "[Chile's Countercyclical Triumph](https://foreignpolicy.com/2012/06/27/chiles-countercyclical-triumph/)," in [Transitions](http://transitions.foreignpolicy.com/), [*Foreign Policy*](http://www.foreignpolicy.com/), June 27, 2012. "[Barrels, Bushels and Bonds](/file_url/1122): How Commodity Exporters Can Hedge Volatility," [*Project Syndicate*,](https://www.project-syndicate.org/commentary/barrels--bushels--and-bonds?barrier=accesspay) Oct.17, 2011. E.g., [*Korea Herald*](http://www.koreaherald.com/national/Detail.jsp?newsMLId=20111018000141). Aand "[Commodity bonds may be neat answer](http://www.smh.com.au/business/commodity-bonds-may-be-neat-answer-20111018-1lynz.html),” *Sydney Morning Herald*, Oct. 19. “[How Can Commodity Exporters](/file_url/783) [Make Fiscal and Monetary Policy Less Procyclical?](/file_url/784)” *Beyond the Curse: Policies to Harness the Power of Natural Resources*, R.Arezki, T.Gylfason & A.Sy, eds. ([International Monetary Fund](http://www.imfbookstore.org/ProdDetails.asp?ID=NRFDEA), 2011). [HKS RWP 11-015](https://www.hks.harvard.edu/publications/how-can-commodity-exporters-make-fiscal-and-monetary-policy-less-procyclical). [Keynote address](/file_url/782), [High Level Seminar](http://www.imf.org/external/np/seminars/eng/2010/afrfin/pdf/program2010.pdf), [IMF Institute & Central Bank of Algeria,](http://www.imf.org/external/np/seminars/eng/2010/afrfin/index.htm) Algiers, Nov.4, 2010. "[How Can Commodity Producers Reduce Procyclicality?](/file_url/1123)" slides, for [*G-20*](http://www.g20.org/index.aspx)*:* *Completing the Agenda*, [AEEF ](http://www.bruegel.org/research/asia-europe-economic-forum-aeef.html)Conference, Session on Fighting Volatility in Commodity Markets, Ministry of Finance, Paris, Jan.2011. “[A Solution to Fiscal Procyclicality](http://si2.bcentral.cl/public/pdf/banca-central/pdf/v17/Vol17_323_391.pdf): [The Structural Budget Institutions Pioneered by Chile](/file_url/461),” 2013, in *Fiscal Policy and Macroeconomic Performance*[*,*](http://www.bcentral.cl/eng/studies/central-banking/v17.htm) edited by Luis Felipe Céspedes & Jordi Galí, Series on Central Banking Analysis, and Economic Policies, vol.17,pp.323-391. Also [in Spanish translation](/file_url/462),[ *Journal Economía Chilena*](http://ideas.repec.org/s/chb/bcchec.html) [(*The Chilean Economy)*](http://ideas.repec.org/s/chb/bcchec.html), vol.14, no.2, August, 2011 (Central Bank of Chile), pp.39-78. [NBER WP No.](http://www.nber.org/papers/w16945)[16945](http://hks.harvard.edu/fs/jfrankel/ChileBudgetRules2011AprNBER.pdf), [April 2011](/file_url/463). "A Solution to Overoptimistic Forecasts and Fiscal Procyclicality: The Structural Budget Institutions Pioneered by Chile," HKS RWP11-012 ([full version with Fixed Effects](/file_url/464)). CID [WP 216](https://www.hks.harvard.edu/centers/cid/publications/faculty-working-papers/solution-fiscal-procyclicality), [Jan.2011](/file_url/469). [ Bank of Chile WP 602](/file_url/468); Annual Conference of the Central Bank of Chile, Oct.2010, Santiago. [Data](/file_url/467). In Stata. Data [explanation](/file_url/465). [Data for figures](/file_url/466)[.](http://hks.harvard.edu/fs/jfrankel/ChileDataforFigures.xlsx~RF128d722.TMP) “[A Comparison of Product Price Targeting and Other Monetary Anchor Options, for Commodity-Exporters](/file_url/726) [in Latin America](https://muse.jhu.edu/pub/11/article/456480)," 2011 *Economia,* vol.12 no. 1 Fall (Brookings Institution). NBER [WP 16362](/file_url/727). Box in [*Natural Resources in Latin America and the Caribbean: Beyond Booms and Busts*](https://elibrary.worldbank.org/doi/abs/10.1596/978-0-8213-8482-4)*,* World Bank, 2010. \[“[LAC can avoid 'natural resource curse' through savings, good policies – World Bank Report](http://www.jamaica-gleaner.com/gleaner/20100915/business/business2.html)”*The Gleaner*, Jamaica, Sept.15, 2010.\] [“Peg the Export Price Index: A Proposed Monetary Regime for Small Countries,”](/file_url/614) in [*Journal of Policy Modeling*,](http://www.elsevier.com/wps/find/journaldescription.cws_home/505735/description#description) June 2005. HKS RWP03-003. ["A Proposed Monetary Regime for Small Commodity-Exporters: Peg the Export Price (‘PEP’),"](/file_url/615) *International Finance* (Blackwill Publishers), vol. , no.1, Spring 2003, 61-88. "[Should Gold-Exporters Peg Their Currencies to Gold?](/file_url/1124)", *Research Study No. 29* for the [World Gold Council](http://www.gold.org/research), London, November 2002. Tables and Charts ["A Proposal to Anchor Monetary Policy by the Price of the Export Commodity," ](https://www.jstor.org/stable/23000852)with Ayako Saiki, in *Journal of Economic Integration*, September 2002, Vol.17, No.3, 417-448. See also:- [ Policies to Cope with Commodity Volatility ](/commodities-terms/commodities-developing-countries-and-resource-curse)