The changing nexus between commodity prices and the dollar: causes and implications

Boris Hofmann, Deniz Igan and Daniel Rees

No 74, BIS Bulletins from Bank for International Settlements

Abstract: Commodity prices and the US dollar have moved in tandem recently, in contrast to their usual statistical pattern of moving in opposite directions. The causes of the change in the relationship are partly temporary, such as the unusual combination of recent shocks, and partly structural, such as the United States' emergence as a net energy exporter. The change in the nexus compounds the stagflationary effects of higher commodity prices for commodity importers, while its implications for commodity exporters are more ambiguous. A lasting change in the nexus could create more difficult challenges for macro-financial stability frameworks, particularly in commodity-importing economies.

Pages: 9 pages
Date: 2023-04-13
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bis.org/publ/bisbull74.pdf Full PDF document (application/pdf)
https://www.bis.org/publ/bisbull74.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bis:bisblt:74

Access Statistics for this paper

More papers in BIS Bulletins from Bank for International Settlements Contact information at EDIRC.
Bibliographic data for series maintained by Martin Fessler (webmaster@bis.org).