Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89149
Authors: 
Burger, John D.
Rebucci, Alessandro
Warnock, Francis E.
Warnock, Veronica Cacdac
Year of Publication: 
2010
Series/Report no.: 
IDB Working Paper Series IDB-WP-107
Abstract: 
This paper assesses the extent to which a country’s external capital structure can aid in mitigating the macroeconomic impact of oil price shocks. Two Caribbean economies highly vulnerable to oil price shocks are considered: an oil importer (Jamaica) and an oil exporter (Trinidad and Tobago). From a risk-sharing perspective, a desirable external capital structure is one that, through international capital gains and losses, helps offset responses of the current account balance to external shocks. It is found that both countries could alter their international portfolio to provide a better buffer against such shocks.
Subjects: 
Hedging
Oil
Foreign assets and liabilities
International portfolios
JEL: 
F3
G1
Document Type: 
Working Paper

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