Do Commodity Prices Signal Inflation?
Keyword(s):
Do the rising commodity prices we have seen in recent years reflect basic supply-and-demand developments in various commodity markets, or are they the first signs of inflation? In practice, it’s not always easy to tell the difference—for the public or policymakers—but fundamentally different they are. Central banks can do nothing about relative commodity-price pressures, since central banks do not produce commodities. Likewise, commodity-price shocks do not impair the ability of central banks to control inflation in principle, but they can greatly complicate the task.
Keyword(s):
2014 ◽
Vol 18
(1)
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Keyword(s):
The opportunity cost of intrastate violence and the out-of-sample validity of commodity price shocks
2019 ◽
Vol 17
(3)
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pp. 309-324
2021 ◽