Agricultural Commodities and their Financialization
29 Pages Posted: 23 Feb 2012 Last revised: 9 Jan 2015
Date Written: February 12, 2012
Agricultural commodities, here considered as renewable products, are critical to many developing countries. Not only are their prices rising, along with price volatility on both spot and future markets, but also an increasing financialization of these products is making itself felt. All this may become a threat to many segments of the populations of low income countries. In this paper, we build a model to help understand how the economic and financial effects interact to produce, for example, food shortages. We explore the consequences and potentials for control.
Keywords: renewable products, agricultural commodities, food shortages, financialization
JEL Classification: G15, Q14, C61
Suggested Citation: Suggested Citation