Cover -- Contents -- Foreword -- Acknowledgments -- Abbreviations and Acronyms -- 1 Overview -- Part I: COMMODITY MARKETS AND THE MACROECONOMY -- 2 Natural Resource Endowment: A Mixed Blessing? -- Introduction -- Policy Issues in Natural-Resource-Rich Countries -- Norway and Other Success Stories -- From Anecdotes to Empirical Testing -- Conclusion -- References -- 3 Primary Commodities: Historical Perspectives and Prospects -- Primary Commodities in the Economic Development Process -- Falling Transport Costs and Globalizing Markets -- The Entry and Exit of the State in the Commodity Sector in the 20th Century -- Real Prices: Falling Long-Run Trends and Short-Run Instability -- Policy Implications for Commodity-Exporting Nations -- References -- Part II: ECONOMIC DIVERSIFICATION AND THE ROLE OF FINANCE -- 4 Economic Diversification in Resource-Rich Countries -- Introduction -- Why Diversify? -- The Resource Curse: A Diversification Perspective -- The Examples of Malaysia, Indonesia, Chile, and Dubai -- Some Common Factors in Success -- Conclusions -- References -- 5 Finance and Oil: Is There a Resource Curse? -- Introduction -- Finance and Growth: Is There a Natural Resource Discount? -- Finance and Natural Resources-Is There a Resource Curse? -- Banks in Resource-Based Economies -- Access to Finance in Resource-Based Economies -- Summary and Policy Implications -- References -- 6 The Economics of Sovereign Wealth Funds: Lessons from Norway -- Introduction -- The Economics of Sovereign Wealth Funds -- The (Long) Road to a Sovereign Wealth Fund -- Sovereign Wealth Management -- Conclusions and Policy Implications -- References -- Part III: FISCAL POLICY -- 7 Primary Commodity Price Series: Lessons for Policymakers in Resource-Rich Countries -- Introduction -- Empirical Evidence -- What Can Policymakers Do to Counter These Three Challenges?.

Summary -- References -- 8 Sustainable Fiscal Policy for Mineral-Based Economies -- Introduction -- Measuring Economic Performance -- Achieving Economic and Fiscal Sustainability -- Conclusions and Policy Implications -- Appendix -- References -- 9 Fiscal Policy In Commodity-Exporting Countries: Stability and Growth -- Introduction -- Data -- Estimation Strategy and Main Results -- Conclusion -- References -- Part IV: EXCHANGE RATES AND FINANCIAL STABILITY -- 10 How Can Commodity Exporters Make Fiscal and Monetary Policy Less Procyclical? -- The Problem of Procyclicality -- Proposal to Make Fiscal Policy More Countercyclical: Emulate Chile's Structural Budget Rule Institutions -- Proposal to Make Monetary Policy More Countercyclical: Product Price Targeting -- Summary -- References -- 11 Natural Resources Management and Financial Stability: Evidence from Algeria -- Introduction -- External Shocks and Financial Instability -- Adoption of Prudent Macroeconomic Management for Increased Resources -- Financing for the Economy in a Context of Prudent Resource Management -- Strengthening the Framework for Financial Stability: Outlook for the Macroprudential Approach -- 12 Copper, The Real Exchange Rate and Macroeconomic Fluctuations in Chile -- Introduction -- Copper in the Chilean Economy -- Fiscal Policy and Copper -- Economic Fluctuations and the Copper Cycle -- Terms-of-Trade Shocks, Real Exchange Rate, and Long-Run Dynamics -- Macroeconomic Fluctuations and Real Exchange Rate Volatility -- Simulation of a Copper Price Shock Using a DSGE Model -- Concluding Remarks -- References -- Appendix A -- Appendix B -- Part V: GOVERNANCE AND INSTITUTIONAL ASPECTS -- 13 The Political Economy of Reform in Resource-Rich Countries -- Introduction -- How Do Countries Reform When They Receive Resource Rents?.

How Should Countries Reform When They Receive Resource Rents? -- Which Reforms? -- The Design of Petroleum Funds and Political Incentives -- Conclusion -- References -- 14 Terms of Trade and Growth of Resource Economies: Contrasting Evidence from Two African Countries -- Introduction -- Theoretical Discussion -- Empirical Model -- Some Lessons and Concluding Observat -- References.