Capital account management could prevent ‘commodity curse’, BIS paper shows

Oil and commodities
Paper examines the negative impacts of a commodity boom

Economic theory implies a positive commodity shock to an open economy can lead to an accumulation of net foreign assets, resulting in a permanent shift of resources out of the traded sector and lower welfare.

However, a paper published by the Bank of International Settlements suggests capital account management and fiscal policies such as a stabilisation fund could prevent this so-called "commodity curse".

Capital account management, authors Enrique Alberola and Gianluca Benigno argue, would

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account