Cao, Shutao; Dong, Wei - 2020 - Last updated: November 2, 2020
We examine the macro implications of commodity price shocks in a general equilibrium model with input-output linkages … for a commodity-exporting small open economy. In the model, fluctuations in commodity price affect aggregate output not … sharp drop in commodity prices. We find that as the model economy adjusts to a commodity price shock, domestic downstream …