Author
Listed:
- Alexandra Dwyer
(Reserve Bank of Australia)
- George Gardner
(Reserve Bank of Australia)
- Thomas Williams
(Reserve Bank of Australia)
Abstract
A significant increase in the level and volatility of many commodity prices over the past decade has led to a debate about what has driven these developments. A particular focus has been on the extent to which they have been driven by increased financial investment in commodity derivatives markets. This article examines the factors behind the increase in the level and volatility of commodity prices. The available evidence suggests that while financial investors can affect the short-run price dynamics for some commodities, the level and volatility of commodity prices appear to be primarily determined by fundamental factors.
Suggested Citation
Handle: RePEc:rba:rbabul:jun2011-07
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References listed on IDEAS
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More about this item
Keywords
Commodity; Commodities; Commodity prices; Commodity price; volatility; Speculation; Oil prices; Financialisation; Financialization; G-20; G20; CRB; Derivatives;
All these keywords.
JEL classification:
- G20 - Financial Economics - - Financial Institutions and Services - - - General
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