Macroeconomic Impacts of Commodity Price Volatility: G20 report Aldo Caliari

The G20 has recently come up with a report on the macroeconomic impacts of excessive commodity price volatility on growth. This study has concluded that excessive volatility creates uncertainty over future price levels, and complicates long-term planning and investment which leads to producers and consumers of commodities underinvesting in physical assets that support growth. This commentary highlights the key features and important findings of this report. G20_Report (Download the full text in PDF format)

Controlling Commodity Speculation Jayati Ghosh

The financial reform legislation passed by the U.S. Senate can help plug, at least partially, the loopholes that allowed frenzied activity in commodity futures markets and generated severe price volatility in many primary commodities. In fact, given the tremendous influence of the U.S. in shaping financial systems globally, even these relatively limited new regulations, if they actually come into play, could force some positive changes elsewhere as well. Speculation (Download the full text in PDF format)