Commodity
in sentence
920 examples of Commodity in a sentence
And yet it is particularly in the US that
commodity
prices have been falling.
That brings us to monetary policy, the importance of which as a determinant of
commodity
prices is often forgotten.
Falling real (inflation-adjusted) interest rates in the 1970s, 2002-2004, and 2007-2008 were accompanied by rising real
commodity
prices; sharp increases in US real interest rates in the 1980s sent dollar
commodity
prices tumbling.
In fact, there are four channels through which the real interest rate affects real
commodity
prices (aside from whatever effect it has via the level of economic activity).
Third, portfolio managers respond to a rise in interest rates by shifting out of
commodity
contracts (which are now an “asset class”) and into treasury bills.
That explains how so many
commodity
prices can be down in terms of dollars and up in terms of other currencies.
Though Latin America’s economies are doing well now thanks to reform and high
commodity
prices, there are underlying problems.
But that growth, based mainly on
commodity
exports and extractive industries, has demonstrated a limited capacity to drive socioeconomic transformation, not least because most of its benefits have accrued to a small share of the population.
The year began with rising food, oil, and
commodity
prices, giving rise to the specter of high inflation.
But the rise of China, the relative decline of the United States, the long boom in
commodity
prices, and the Western financial collapse of 2008 have created space for political and economic experiments.
We should never permit the tools of suffering and death to be traded like any other
commodity.
Secular Stagnation Heads SouthSANTIAGO – As
commodity
prices come back to earth and the Federal Reserve’s gradual exit from quantitative easing leads to higher interest rates in the United States, Latin America’s economies face the challenge of sustaining growth.
So, can Latin American economies keep growing once
commodity
prices and world interest rates edge back toward normality?
A sudden shift toward trade protectionism could drive up agricultural
commodity
prices further.
This tendency seemed to be at work from the mid-1980’s, as
commodity
producers experienced a persistent decline in prices.
Food
commodity
prices have increased by 150% since 2001.
Meanwhile, with the US economy near full employment, fiscal-stimulus policies, together with rising oil and
commodity
prices, are stoking domestic inflation.
These structural changes have put most Latin American economies on a sound footing, reducing their vulnerability to external shocks, such as deceleration in world economic growth, higher international interest rates, and lower
commodity
prices.
But it clearly began to expand in the recent past, perhaps as a symptom of a “natural-resource curse,” stemming from the discovery of deep-sea pre-salt oil reserves during the 2000-2014
commodity
super-cycle.
Perhaps weaker
commodity
prices will create space for other imports, and
commodity
producers’ trade positions will swing toward lower surpluses.
But lower
commodity
prices in a highly buoyant global economy would not be in line with past patterns.
In 2013, amid waning Chinese demand,
commodity
prices fell.
In the early 2000s, flush with cash thanks to a
commodity
boom, Lula’s government began to distribute subsidized credit to consumers and businesses, hold down energy prices artificially, and expand government spending at more than double the rate of GDP growth.
Rather than acknowledge the problem and revise policies accordingly, Rousseff allegedly resorted to dodgy accounting tricks to enable her government ostensibly to meet its primary-surplus target without cutting social transfers, even as
commodity
prices collapsed.
First, high
commodity
prices yield windfall profits for the region’s leading producers of raw materials.
At any time, however, groups of individuals can choose to believe that some
commodity
– a specific type of seashell, or gold, or tulips – will be a far better store of value than money, and that its value in money terms is bound to rise.
What matters is simply that the supply of the chosen
commodity
cannot be rapidly and limitlessly increased.
As a result, the Soviet economy became even more dependent on resource revenues, making it extremely vulnerable to price fluctuations in international
commodity
markets.
Reserves are also clearly important for countries that produce only a few goods – especially
commodity
producers – and thus face big and unpredictable swings in world market prices.
In this newly competitive environment, oil will trade like any normal commodity, with the Saudi monopoly broken and North American production costs setting a long-term price ceiling of around $50 a barrel, for reasons I set out in January.
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