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Maros Ivanic and Will Martin

restrictions can help reduce the pressure on world prices. For example, when Ukraine announced that it would relax its export restrictions in April 2008, wheat prices immediately declined by 18 percent ( Chauffour, 2008 ). Public stockpiles can be used to cope with short-run food-security challenges, but they are costly and involve difficult management issues. There is pervasive uncertainty about the quantity of stocks required and the amount to release at any stage. Moreover, stock management policies can be destabilizing if, as seems to have happened in 2008, governments