An Evidence of Speculation in Indian Commodity Markets
Vijay Kumar Varadi
February 20, 2012
Recent price surge in commodity markets has stipulated the intensity of various factors which lead the price volatility. There are multiple-factors namely, traditional supply and demand, excess global liquidity (i.e., monetary inflows in commodity markets), and financialization i.e., financial investors (portfolio investment and speculation) attitude. This paper is an attempt to investigate for the evidence and impact of speculation on volatility of commodity prices in Indian commodity markets. And, results exhibit that speculation has played decisive role in the commodity price bubble during the global crisis in India.
Number of Pages in PDF File: 23
Keywords: Commodity Markets, Speculation, Price Volatility, Financialization and Investor’s behaviour
JEL Classification: G12, G18, G28working papers series
Date posted: April 20, 2012
© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.391 seconds