Title: Management of oil windfalls in Mexico
Description: Policy options for protecting Mexico's economy from volatility in oil revenues without eliminating the benefits from rising prices include a stablilizaton fund and hedging strategies on international markets. A stabilization fund and hedging strategies can complement each other, the fund working as the main receipient of revenues, and the hedging strategies managing short-lived movements in prices. This joint strategy would reduce the size of the fund and the probablility of its going bankrupt.
Subjects: Economic aspects of Petroleum industry and trade, Hedging (Finance), Options (Finance), Petroleum industry and trade, Petroleum products, Prices
Places: Mexico