The stabilisation of the international coffee market

The inherent instability in the international coffee market has long been a major problem for both producers and consumers. Traditionally, attempts have been made to reduce both long-and short-term fluctuations using single policy instruments, such as export quotas. However, an examination of the causes of the two types of variability, and a comparative assessment of the likely success of various types of policy indicates that, although short term instability can be effectively removed by traditional instruments, the more problematic, long-term cyclicality requires more specific, separate consideration.