Front Matter Page
Western Hemisphere Department
Contents
I. Introduction
II. Copper Price Uncertainty and Investment: Theory
III. Lower and More Uncertain Copper Prices: Measurement
A. Facts
B. Measuring Copper Price Uncertainty
C. Results
IV. Var Analysis
V. Conclusion
FIGURES
1. Copper and the Chilean Economy
2. Macroeconomic Effects of Copper Prices in Chile
3. Historical Price of Copper
4. Price of Copper Versus Projections
5. Uncertainty Measures
6. Market Expectations on the CLP/USD Exchange Rate
7. Investment and Uncertainty
APPENDIX
A. Using Malz Methodology to Generate Options-Implied Probability Density Functions for the Peso/USD Exchange Rate and for Copper Prices
References