01716cas a2200253 a 4500 AALejournalIMF000174 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451850598 1018-5941 BD-DhAAL BD-DhAAL Gunning, Jan. Policy towards Commodity Shocks in Developing Countries / Jan Gunning, Paul Collier. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students On the basis of a comparative study of 23 episodes involving commodity price shocks we find that both the public and private sectors typically save around half of a windfall gain resulting from a price rise. We argue that private windfalls should be left with the private sector rather than taxed. The focus of policy towards windfalls should be monetary rather than fiscal. The central bank should accommodate aggregate changes in the demand for financial assets. The private sector will initially wish to increase its claims on the central bank as it saves the windfall, but will then reduce them as portfolios are switched into real assets. Mode of access: Internet Collier, Paul. IMF Working Papers; Working Paper ; No. 1996/084 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/084/001.1996.issue-084-en.xml IMF e-Library