source of economic fluctuations. Alongside times of high volatility, however, these economies also experience periods in … open economies and examine the responses of output, the current account and prices to changes in terms of trade volatility … using a vector autoregression (VAR). We find that increased terms of trade volatility, by itself, is associated with a …

rise in the volatility of individual components in the capital account, this variability is largely offsetting. Such …