| Title: |
The Transmission of Global Food Prices |
| Authors: |
Jayati Ghosh; James Heintz; Robert Pollin; Jel Codes G |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_251-300/WP269.pdf. |
| Publication Year: |
2011 |
| Collection: |
CiteSeerX |
| Description: |
In December 2010, the FAO food price index surpassed its previous peak of June 2008, and prices have been maintained at this high level through September 2011 (i.e. as of this writing). This pattern in food prices is creating justified fears of a renewal or intensification of the global food crisis. This paper reviews arguments and evidence to inform current debates on how to regulate commodity futures markets in the face of such price volatility and sustained high prices, focusing on 1) the relationship between market liquidity and price patterns in asset markets in general and commodities futures markets in particular, and 2) the relationship between spot and futures market prices for food. We find that there is strong and consistent evidence in support of the need to limit the huge increases in trading volume on futures markets through effective regulations. We also find that the opposite position—i.e. the main analytic arguments opposing market regulation—cannot be supported by the evidence. That is, we find no support for the claim that liquidity in futures markets serves to stabilize prices at their “fundamental ” values or that spot market prices are formed free of any significant influence from futures markets. Given these results, the most appropriate position for regulators to assume |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.361.922 |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.361.922; http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_251-300/WP269.pdf |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.48A132AE |
| Database: |
BASE |