Policy responses to commodity price fluctuations

Number: 
967
Published: 
Classification JEL: 
E58, E37, E43, Q43
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

The world economy has recently been hit by commodity price fluctuations, with first round effects on noncore inflation and second round effects on core in ation. The policy response to these fluctuations depends on the first and second round effects as