Series: IMF Working Papers
Author(s): Eduardo Borensztein , Damiano Sandri , and Olivier Jeanne
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 2009
Keywords: commodity exports, hedging instruments, forward contracts, open interest, commodity prices,
This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for commodity-exporting countries. The introduction of hedging instruments such as futures and opti...