IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v58y1982i1p18-31.html
   My bibliography  Save this article

Exchange Rate Policy and the Resources Boom

Author

Listed:
  • W. M. CORDEN

Abstract

This paper considers some policy choices posed by the prospective Australian resources boom, distinguishing between the investment boom and the export boom and between the adjustment and the non‐adjustment options. With adjustment both booms are likely to lead to real appreciation, raising the ‘Dutch disease’ issues. Non‐adjustment means accumulating foreign exchange reserves by preventing both nominal appreciation and inflation. It is discussed whether protection by tariffs or quotas should be lowered or raised because of the export boom. An Appendix analyzes the monetary policy implications of both the floating rate (adjustment) and the fixed rate (non‐adjustment) cases.

Suggested Citation

  • W. M. Corden, 1982. "Exchange Rate Policy and the Resources Boom," The Economic Record, The Economic Society of Australia, vol. 58(1), pages 18-31, March.
    • Handle: RePEc:bla:ecorec:v:58:y:1982:i:1:p:18-31
    DOI: 10.1111/j.1475-4932.1982.tb00346.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1982.tb00346.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1982.tb00346.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard H. Snape, 1977. "Effects Of Mineral Development On The Economy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 147-156, December.
    2. Snape, Richard H., 1977. "Effects Of Mineral Development On The Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 1-10, December.
    3. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39(2), pages 137-137.
    4. Garnaut, Ross & Clunies Ross, Anthony, 1975. "Uncertainty, Risk Aversion and the Taxing of Natural Resource Projects," Economic Journal, Royal Economic Society, vol. 85(338), pages 272-287, June.
    5. Michael Porter, 1978. "External shocks and stabilization policy in a small open economy: The Australian experience," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(4), pages 709-735, December.
    6. M. G. Porter, 1974. "The Interdependence of Monetary Policy and Capital Flows in Australia," The Economic Record, The Economic Society of Australia, vol. 50(1), pages 1-20, March.
    7. Robert M. Solow, 1974. "The Economics of Resources or the Resources of Economics," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 12, pages 257-276, Palgrave Macmillan.
    8. Andrew B. Stoeckel, 1979. "Some General Equilibrium Effects Of Mining Growth On The Economy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 23(1), pages 1-22, April.
    9. Harris, Stuart, 1980. "Resources policies in Australia," Resources Policy, Elsevier, vol. 6(2), pages 179-191, June.
    10. Stoeckel, Andrew B., 1979. "Some General Equilibrium Effects Of Mining Growth On The Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(1), pages 1-22, April.
    11. Johnson, Harry G, 1970. "A Note on Distortions and the Rate of Growth of an Open Economy," Economic Journal, Royal Economic Society, vol. 80(323), pages 990-992, December.
    12. repec:bla:ecorec:v:50:y:1974:i:129:p:1-20 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yihui Lan, 2003. "The Long-Term Behaviour of Exchange Rates, Part II: Aspects of Exchange-Rate Economics," Economics Discussion / Working Papers 03-06, The University of Western Australia, Department of Economics.
    2. Clements, Kenneth & Lan, Yihui & Roberts, John, 2008. "Exchange-rate economics for the resources sector," Resources Policy, Elsevier, vol. 33(2), pages 102-117, June.
    3. Anderson, Kym & Strutt, Anna, 2012. "Growth in Emerging Economies: Implications for Resource-Rich Countries by 2030," Conference papers 332283, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Nishkar Kumar, Nikeel & Patel, Arvind, 2024. "A test of the tourism Dutch disease hypothesis in developing countries," Journal of Air Transport Management, Elsevier, vol. 116(C).
    5. Carson, Matthew., 2010. "Guiding structural change : the role of government in development," ILO Working Papers 994550973402676, International Labour Organization.
    6. Lim, Chansu & Lee, Jongsu, 2020. "An analysis of the efficiency of the oil refining industry in the OECD countries," Energy Policy, Elsevier, vol. 142(C).
    7. John J. Struthers, 1990. "Nigerian Oil and Exchange Rates: Indicators of ‘Dutch Disease’," Development and Change, International Institute of Social Studies, vol. 21(2), pages 309-341, April.
    8. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    9. Ricardo Hausmann & Roberto Rigobon, 2003. "An Alternative Interpretation of the 'Resource Curse': Theory and Policy Implications," NBER Working Papers 9424, National Bureau of Economic Research, Inc.
    10. repec:ilo:ilowps:455097 is not listed on IDEAS
    11. Majah-Leah Ravago & James Roumasset, 2009. "Economic Policy for Sustainable Growth and Development vs. Greedy Growth and Preservationism," Working Papers 200909, University of Hawaii at Manoa, Department of Economics.
    12. Majah-Leah Ravago & James Roumasset & Kimberly Burnett, 2008. "Resource management for Sustainable Development of Island Economies," Working Papers 200804, University of Hawaii at Manoa, Department of Economics.
    13. Ye, Qiang, 2008. "Commodity booms and their impacts on the Western Australian economy: The iron ore case," Resources Policy, Elsevier, vol. 33(2), pages 83-101, June.
    14. Clements, Kenneth W. & Ahammad, Helal & Qiang, Ye, 1996. "New mining and mineral-processing projects in Western Australia: Effects of employment and the macro-economy," Resources Policy, Elsevier, vol. 22(4), pages 293-346, December.
    15. Qiang, Ye, 1999. "How different is mining from mineral processing? A general equilibrium analysis of new resources projects in Western Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(3), pages 1-26, September.
    16. Grant Mark Nülle & Graham A. Davis, 2018. "Neither Dutch nor disease?—natural resource booms in theory and empirics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 35-59, May.
    17. Stephen J. Turnovsky, 1983. "Expanding Exports and the Structure of the Domestic Economy: A Monetary Analysis," The Economic Record, The Economic Society of Australia, vol. 59(3), pages 245-259, September.
    18. Qiang Ye, 2006. "Commodity Booms and Their Impacts on the Western Australian Economy: The Iron Ore Case," Economics Discussion / Working Papers 06-18, The University of Western Australia, Department of Economics.
    19. repec:ags:aare16:235308 is not listed on IDEAS
    20. Azarhoushang, Behzad & Rukavina, Marko, 2014. "Resource curse: A comparative study," IPE Working Papers 30/2014, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    21. Carlos Barros, 2012. "The Resource Curse and Rent-Seeking in Angola," CEsA Working Papers 102, CEsA - Centre for African and Development Studies.
    22. Anderson, Kym, 1983. "Economic Growth, Comparative Advantage and Agricultural Trade of Pacific Rim Countries," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 51(03), pages 1-18, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Clements, Kenneth W. & Ahammad, Helal & Qiang, Ye, 1996. "New mining and mineral-processing projects in Western Australia: Effects of employment and the macro-economy," Resources Policy, Elsevier, vol. 22(4), pages 293-346, December.
    2. Clements, Kenneth & Lan, Yihui & Roberts, John, 2008. "Exchange-rate economics for the resources sector," Resources Policy, Elsevier, vol. 33(2), pages 102-117, June.
    3. Ye, Qiang, 2008. "Commodity booms and their impacts on the Western Australian economy: The iron ore case," Resources Policy, Elsevier, vol. 33(2), pages 83-101, June.
    4. Qiang Ye, 2006. "Commodity Booms and Their Impacts on the Western Australian Economy: The Iron Ore Case," Economics Discussion / Working Papers 06-18, The University of Western Australia, Department of Economics.
    5. repec:ags:aare16:235308 is not listed on IDEAS
    6. Grant Mark Nülle & Graham A. Davis, 2018. "Neither Dutch nor disease?—natural resource booms in theory and empirics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 35-59, May.
    7. Pandey, Sushil & Piggott, Roley R. & MacAulay, T. Gordon, 1982. "The Elasticity Of Aggregate Australian Agricultural Supply: Estimates And Policy Implications," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(3), pages 1-18, December.
    8. Phillip Edmund Metaxas & Ernst Juerg Weber, 2016. "An Australian Contribution to International Trade Theory: The Dependent Economy Model," The Economic Record, The Economic Society of Australia, vol. 92(298), pages 464-497, September.
    9. Kym Anderson, 2020. "Trade Protectionism In Australia: Its Growth And Dismantling," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1044-1067, December.
    10. K.H. Choi, 1988. "The Economics of Booming Sectors," Economics Discussion / Working Papers 88-04, The University of Western Australia, Department of Economics.
    11. G.L. Murray, 1981. "The 'Gregory Thesis' - Where Does it Stand?," Economics Discussion / Working Papers 81-20, The University of Western Australia, Department of Economics.
    12. Stoeckel, Andrew B., 1979. "Some General Equilibrium Effects Of Mining Growth On The Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(1), pages 1-22, April.
    13. Dale W. Henderson & Stephen W. Salant, 1976. "Market anticipations, government policy, and the price of gold," International Finance Discussion Papers 81, Board of Governors of the Federal Reserve System (U.S.).
    14. Hala Abu-Kalla & Ruslana Rachel Palatnik & Ofira Ayalon & Mordechai Shechter, 2020. "Hoard or Exploit? Intergenerational Allocation of Exhaustible Natural Resources," Energies, MDPI, vol. 13(24), pages 1-20, December.
    15. Devarajan, Shantayanan & Fisher, Anthony C, 1981. "Hotelling's "Economics of Exhaustible Resources": Fifty Years Later," Journal of Economic Literature, American Economic Association, vol. 19(1), pages 65-73, March.
    16. Peter Tulip, 2014. "The Effect of the Mining Boom on the Australian Economy," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 17-22, December.
    17. Clements, Kenneth W. & Fry, Renée, 2008. "Commodity currencies and currency commodities," Resources Policy, Elsevier, vol. 33(2), pages 55-73, June.
    18. Franco, Marco P.V. & Gaspard, Marion & Mueller, Thomas, 2019. "Time discounting in Harold Hotelling's approach to natural resource economics: The unsolved ethical question," Ecological Economics, Elsevier, vol. 163(C), pages 52-60.
    19. Benchekroun, Hassan & Ray Chaudhuri, Amrita & Tasneem, Dina, 2020. "On the impact of trade in a common property renewable resource oligopoly," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    20. Sorin-George Toma & Paul Marinescu & Catalin Gradinaru, 2016. "The Age Of Sustainable Business Models," Management Strategies Journal, Constantin Brancoveanu University, vol. 34(4), pages 128-132.
    21. Osmel Manzano & Francisco Monaldi, 2008. "The Political Economy of Oil Production in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2008), pages 59-103, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:58:y:1982:i:1:p:18-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.