The Vulnerability of Price Stabilization Schemes to Speculative Attack
Bibliographic Data
| ID | 10177640 |
|---|---|
| Authors | Stephen W Salant (0000-0001-5407-4572, corresponding author) |
| Year | 1983 |
| Volume | 91 |
| Issue | 1 |
| Pages | 1-38 |
| Publication date | 1983-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/261127 |
| OpenAlex | W2158905545 |
| Language | EN |
| Citations received | 9 |
| References cited | 7 |
This paper examines the effects of government attempts to stabilize the prices of commodities by use of buffer stocks. Agricultural goods subject to supply uncertainty as well as depletable resources are considered. In each case, it is shown that the resulting rational expectations competitive equilibrium contains a speculative attack--a situation where the entire government stock is suddenly purchased by previously inactive speculators. The analysis is applied to the historical attempt to peg the gold price, which caused the attack of 1968. The insights gained and the methodology developed also apply to the various international agreements to impose bans on commodity prices which have been proposed by the United Nations Conference on Trade and Development
Buffer stock scheme · Commodity · Computer security · Economics · Government (linguistics · Microeconomics · Monetary economics · Speculation · Stock (firearms · Vulnerability (computing · Finance · Global Financial Crisis and Policies · Market Dynamics and Volatility · Monetary Policy and Economic Impact
On the Behaviour of Commodity Prices
Was It Possible to Stabilise the Price of Wool? Organised Wool Marketing 1916 to 1970
Recurrent Devaluation and Speculative Attacks on the Mexican Peso
The Incidence of Market-Stabilising Price Support Schemes
Commodity Agreements and Commodity Markets
Welfare implications of commodity price stabilization under export restrictions
Changes in Regime and the Risks in Stabilising Speculative Markets
Does Bulog Stabilise Rice Prices in Indonesia? Should It Try
Sanctioned and speculated
| Unique citing works | 9 |
|---|---|
| Citations per year | 0,23 |
| Citation span | 1986 - 2025 (40) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 9 |