Monetary and fiscal implications of commodity price shocks for commodity-exporting small open economies
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Abstract
Commodity-exporting economies, such as South Africa, are susceptible to wide fluctuations in their business cycles, closely tied to commodity price fluctuations. In this research, we develop a prototype dynamic stochastic general equilibrium (DSGE) model with specific features for emerging small open commodity-exporting economies, together with investigating the implications for monetary and fiscal policies following a commodity price shock.
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This paper has been announced in the following NEP Reports:- NEP-CBA-2026-03-30 (Central Banking)
- NEP-DGE-2026-03-30 (Dynamic General Equilibrium)
- NEP-MIN-2026-03-30 (Mining)
- NEP-MON-2026-03-30 (Monetary Economics)
- NEP-OPM-2026-03-30 (Open Economy Macroeconomics)
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