Interest Rates and Commodity Prices

John Kitchen () and Gordon Rausser

Journal of Agricultural Economics Research, 1989, vol. 41, issue 2, 7

Abstract: The theory of storage and arbitrage approaches fully incorporate nominal interest rates in far-near commodity price spreads Alternative frameworks admit a relationship between interest rates and commodity own rates of interest and as a result the commodity price spread would not completely incorporate the nominal interest rate This study examines the Views on interest rate-commodlty price relationships, the potential role of nonneutralities, and empirical evidence on the relationships The evidence does not support the hypothesis of a close relationship between commodity own rates and the real interest rate

Keywords: Demand and Price Analysis; Financial Economics; Risk and Uncertainty (search for similar items in EconPapers)
Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersja:138240

DOI: 10.22004/ag.econ.138240

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