Free Markets vs.a Producer Price System: Why are Commodity Markets Becoming Financialized?

Yves Jégourel

No 1510, Policy briefs on Commodities & Energy from Policy Center for the New South

Abstract: The financialization of commodity chains has its origins far beyond the increased participation of investment funds on the futures markets. It should basically be understood as the consequence of the progressive inability of players that make up these commodity chains to jointly manage price risk resulting from the transfer of product from upstream to downstream. This dynamic has emerged since the late 1970s, but it is likely that the current drop in prices, if it proved sustainable, and China's assertion as a financial power to strengthen the dynamic in the coming years.

Date: 2015-06
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.policycenter.ma/sites/default/files/2021-01/OCPPC-PB-1518Env2.pdf (application/pdf)

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:ocp:pbcoen:pb-1518

Access Statistics for this paper

More papers in Policy briefs on Commodities & Energy from Policy Center for the New South Contact information at EDIRC.
Bibliographic data for series maintained by Policy Center for the New South's Customer service ( this e-mail address is bad, please contact ).