NBER

Thomas Drechsel

3114 Tydings Hall
University of Maryland
United States
United States
College Park, MD 20742

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: University of Maryland

NBER Working Papers and Publications

August 2017Commodity Booms and Busts in Emerging Economies
with Silvana Tenreyro: w23716
Emerging economies, particularly those dependent on commodity exports, are prone to highly disruptive economic cycles. This paper proposes a small open economy model for a net commodity exporter to quantitatively study the triggers of these cycles. The economy consists of two sectors, one of which produces commodities with prices subject to exogenous international fluctuations. These fluctuations affect both the competitiveness of the economy and its borrowing terms, as higher commodity prices are associated with lower spreads between the country's borrowing rate and world interest rates. Both effects jointly result in strongly positive effects of commodity price increases on GDP, consumption and investment, and a negative effect on the total trade balance. Furthermore, they generate exces...

Published: Thomas Drechsel & Silvana Tenreyro, 2017. "Commodity Booms and Busts in Emerging Economies," Journal of International Economics, . citation courtesy of

June 2017Commodity Booms and Busts in Emerging Economies
with Silvana Tenreyro
in NBER International Seminar on Macroeconomics 2017, Jeffrey Frankel, Hélène Rey, and Charles Engel, organizers

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