Commodity markets: evolution, challenges and policies

Commodity markets are an integral part of the global economy. Understanding what drives the development of these markets is essential to designing policy frameworks that facilitate the economic goals of sustainable growth, inflation stability, poverty reduction, food security, and climate change mitigation. This study is the first comprehensive analysis examining the evolution of markets and policies for all commodity groups, including energy, metals and agriculture, over the past century. He finds that while the amount of raw materials consumed has increased enormously, driven by population and income growth, the relative importance of raw materials has changed over time as technological innovation has created new uses for certain materials and facilitated substitution between raw materials. The study also shows that commodity markets are heterogeneous in terms of drivers, price behavior and macroeconomic impact across emerging markets and developing economies, and that the relationship between economic growth and commodity demand raw materials varies considerably from country to country, depending on their stage of economic development. . Policy frameworks that allow for countercyclical macroeconomic responses have become increasingly common and beneficial. Other policy tools have had mixed results.

PRAISE FOR THE BOOK

“Discussions of emerging commodity-exporting markets are often based on ideas with little empirical and analytical support. This book, based on vigorous research, is a great contribution to improving our understanding of these economies. It provides evidence solid empirical evidence, including a long-term perspective on commodity prices. It also contains very in-depth policy analysis, with implications for resilience, macroeconomic policies and development strategies. It will be a key reference for academics as well as policy makers.

— José De Gregorio, Dean of the School of Economics and Business at the University of Chile, former Minister of Economy, Mines and Energy and Governor of the Central Bank of Chile

“Commodity Markets: Evolution Challenges and Policies is an in-depth analysis of just about everything you’ve ever wanted to know about commodity markets. It covers a wide range of commodity prices and production (primarily l energy, metals and agricultural commodities) last century, carefully documenting and rigorously analyzing the significant difference in experiences between different commodity groups It is comprehensive in its historical coverage but also addresses contemporary issues such as a insightful analysis of the impact of the COVID19 pandemic and the war in Ukraine on commodity prices.It highlights the impact of shocks, technology and policies as drivers of demand and supply for a range of different products. This book is essential reading for anyone interested in the drivers of product pricing and production. s baseline over the past century and the implications for future trends.”

–Warwick McKibbin, Emeritus Professor of Economics and Public Policy, Director of the Center for Applied Macroeconomic Analysis, Director of Policy Engagement at the Australian Research Center of Excellence in Population Aging Research, Australian National University

“A good understanding of commodity markets is more essential than ever in light of the Covid-19 pandemic, the war in Ukraine and the transition from fossil fuels to renewable energy. This volume offers an excellent, comprehensive analysis It carefully examines historical and likely future trends in commodity supply, demand and prices, and offers detailed policy proposals to avoid the havoc that turbulent commodity markets can wreak. to the economies of commodity exporters and importers.”

— Rick Van der Ploeg, Research Director, Oxford Center for the Analysis of Resource-Rich Economies, University of Oxford

“Commodity prices tend to be viewed as an aggregate, especially when they periodically move together. While these aggregate movements are important, this excellent and well-researched book emphasizes the heterogeneity of commodity markets. and the different economic forces acting on them. Heterogeneity calls for differentiated and tailored policy tools that take into account the specificities of markets, a message that analysts and policymakers would do well to heed.”

— Ravi Kanbur, TH Lee Professor of World Affairs, International Professor of Applied Economics and Management, Cornell University

“Commodity markets are complex and constantly changing. This insightful and well-structured study of all the ins and outs of commodity markets is a valuable addition to the literature for understanding how these markets work and their impacts on the economy. world economy.As the war in Ukraine and the COVID-19 pandemic continue to have substantial impacts on commodity prices and supply chains, this incredibly timely study offers analysts and policymakers a solid basis for making better forecasts and developing more effective policy responses.

— Abdolreza Abbassian, former Senior FAO Economist and G20-AMIS Secretary

“While many African countries have been spared the ravages of the Covid-19 pandemic, their economies have suffered from the collapse in commodity prices. Since then, the war in Ukraine has affected developing countries to thousands of miles away as oil, gas and food prices have Not only are commodity markets feeling the impact of global shocks, but they are transmitting them to commodity-dependent countries around the world. This book lucidly explains how these shocks affect commodity markets and, in turn, how fluctuations in these markets affect developing economies.As the world grapples with climate change and the energy transition, these findings will become even more important.”

— Shanta Devarajan, Professor of International Development Practice, Georgetown University

Commodity markets: evolution, challenges and policies will provide the JP Morgan Center for Commodities with the comprehensive manual we’ve always wanted to write. Currently, the vast majority of commodity-related textbooks are dominated by trading issues, with limited emphasis on market fundamentals. As a result, our instructors typically draw on a wide range of articles, book chapters, and case studies for their respective courses. By providing comprehensive and detailed coverage of these issues, this book fills a major gap in the literature.”

— Tom Brady, Executive Director, JP Morgan Center for Commodities, University of Colorado Denver

“I wish I had this book earlier in my career! Commodity markets: evolution, challenges and policies provides an insightful analysis of the dynamics of commodity markets and their implications for the wider economy. A must read for anyone interested in commodity markets.”

— Xiaoli Etienne, Associate Professor and Idaho Wheat Board Endowed Chair in Commodity Risk Management, University of Idaho

OTHER BOOKS ON THE WORLD ECONOMY

A decade after the global recession (20/11/19)

Global productivity: trends, drivers and policies (04/07/20)

Inflation in Emerging and Developing Economies (07/11/18)

The long shadow of informality: challenges and policies (5/11/21)

Global Waves of Debt: Causes and Consequences (19/12/19)

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