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Commodity Prices in Boom-and-Bust Cycles

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  • Valiante, Diego

Abstract

The sharp and widespread increase in most commodity prices has alarmed the world and raised questions around the sustainability of our economies. As shown in this ECMI Commentary, the reasons for this dramatic rise are multiple, and engaging in a witch-hunt benefits neither the market as a whole nor our economies. Solutions need to be more differentiated and oriented towards two factors: preventing price manipulation (through controls on net positions and on anti-competitive market structures) and fostering sustainability.

Suggested Citation

  • Valiante, Diego, 2011. "Commodity Prices in Boom-and-Bust Cycles," ECMI Papers 5716, Centre for European Policy Studies.
    • Handle: RePEc:eps:ecmiwp:5716
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    File URL: https://www.ceps.eu/system/files/book/2011/06/No%2029%20Valiante%20on%20Commodity%20Price%20Formation.pdf
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    References listed on IDEAS

    as
    1. Paul Cashin & C. John McCDermott, 2002. "The Long-Run Behavior of Commodity Prices: Small Trends and Big Variability," IMF Staff Papers, Palgrave Macmillan, vol. 49(2), pages 1-2.
    2. Cinquegrana, Piero, 2008. "The Need for Transparency in Commodity and Commodity Derivatives Markets," ECMI Papers 1589, Centre for European Policy Studies.
    3. Robert S. Pindyck, 2001. "The Dynamics of Commodity Spot and Futures Markets: A Primer," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-30.
    4. Kyle, Albert S, 1985. "Continuous Auctions and Insider Trading," Econometrica, Econometric Society, vol. 53(6), pages 1315-1335, November.
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