How Do Governments Respond to Food Price Spikes? Lessons from the Past

Journal of International Commerce, Economics and Policy (JICEP), World Scientific, 2010

Posted: 22 Aug 2011

See all articles by Kym Anderson

Kym Anderson

University of Adelaide - Centre for International Economic Studies (CIES); Centre for Economic Policy Research (CEPR); Australian National University

Signe Nelgen

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: October 1, 2010

Abstract

Food prices in international markets spiked upward in 2008, doubling or more in a matter of months. Evidence is still being compiled on policy responses over the following two years, but new time series estimates of government intervention for the previous five decades allow insights into past policy responses to price fluctuations and spikes. This paper reviews the distortionary impacts of policies used by governments attempting to stabilize their domestic food markets. It then focuses on policy responses in the mid-1970s, as reflected in domestic prices and various annual indicators of distortions to producer and consumer incentives, before drawing out some policy lessons.

Keywords: Commodity price stabilization policies, domestic market insulation, distorted incentives, agricultural and trade policies, trade restrictiveness indexes

Suggested Citation

Anderson, Kym and Nelgen, Signe, How Do Governments Respond to Food Price Spikes? Lessons from the Past (October 1, 2010). Journal of International Commerce, Economics and Policy (JICEP), World Scientific, 2010, Available at SSRN: https://ssrn.com/abstract=1913991

Kym Anderson (Contact Author)

University of Adelaide - Centre for International Economic Studies (CIES) ( email )

School of Economics
Adelaide SA 5005
Australia
+61 8 8313 4712 (Phone)
+61 8 8223 1460 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Australian National University ( email )

Arndt-Corden Dept of Economics
Coombs Building
Canberra, AK ACT 2600
Australia
+61 8 8313 4712 (Phone)

HOME PAGE: http://publicpolicy.anu.edu.au/crawford_people/content/staff/acde/kanderson.php

Signe Nelgen

affiliation not provided to SSRN ( email )

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