Demand Shocks Fuel Commodity Price Booms and Busts
4 Pages Posted: 18 Jan 2018
Date Written: 2017
Demand shocks due to rapid industrialization have driven commodity price booms throughout history. As periods of industrialization lose steam and supply catches up, busts follow after about 10 years. A new dataset of price and production levels of 12 commodities provides evidence of this behavior from 1870 to 2013.
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