Partial Price Stabilisation and National Export Earnings Instability

Abstract

This article shows that partial price stabilisation is superior to complete price stabilisation in stabilising national export earnings in virtually all situations and is more likely to stabilise national than world export earnings, in contrast to the findings of an earlier study. It also shows that the kind of partial price stabilisation achievable in practice is almost certain to reduce instability in the export earnings from each commodity for every exporting country.

Citation

Nguyen, D.T. (1989), "Partial Price Stabilisation and National Export Earnings Instability", Journal of Economic Studies, Vol. 16 No. 3. https://doi.org/10.1108/EUM0000000000133