tag:blogger.com,1999:blog-5713178645208582139.post5399074305697276982..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Bernanke and Commodity PricesDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5713178645208582139.post-80722414362171193582011-02-28T08:37:59.327-06:002011-02-28T08:37:59.327-06:00These are all fascinating posts. But it appears to...These are all fascinating posts. But it appears to me that everyone is trying to explain something that only requires a little common sense to define or understand. If interest rates weren't being artificially manipulated by a central bank, risk would be priced into this figure much more efficiently. Consequently, the housing bubble would not have been possible.<br /><br />On the other hand, philippeshttps://www.blogger.com/profile/04827956821171163406noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-32569440933671259932011-02-06T12:24:42.884-06:002011-02-06T12:24:42.884-06:00David
I did a post broadening the "evidence&...David <br />I did a post broadening the "evidence":<br />http://thefaintofheart.wordpress.com/2011/02/06/bernanke-and-higher-food-commodity-prices/João Marcushttps://www.blogger.com/profile/13658264244033012660noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-3826625876561927572011-02-06T11:14:42.132-06:002011-02-06T11:14:42.132-06:00I would ask the question a little differently. Th...I would ask the question a little differently. The Fed's stated aim is to increase inflation, which it finds intolerably low. The question is, "by what path should we expect Fed policy to increase inflation?" Shelter is 40% of core CPI, and shelter prices are unlikely to rise any time soon (given the level of housing inventory). Further, medical cost inflation has declined in David Pearsonnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-53821382642989648132011-02-05T15:30:59.557-06:002011-02-05T15:30:59.557-06:00David
But isn´t there a contradiction between what...David<br />But isn´t there a contradiction between what Bernanke says (and you subscribe) and your recent and not so recent posts on "The Monetary Superpower Status" of the US?João Marcushttps://www.blogger.com/profile/13658264244033012660noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-8242328087587421502011-02-04T14:35:27.808-06:002011-02-04T14:35:27.808-06:00"Supply and demand abroad for commodities, no..."Supply and demand abroad for commodities, not U.S. monetary policy, are causing higher food and energy prices rattling much of the world, Federal Reserve Chairman Ben Bernanke said Thursday."<br /><br />Most commodity prices are priced in US dollars, so any monetary policy that lowers the value of the USD will by definition increase the price of commodities.JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-34536405885509654262011-02-04T13:58:47.751-06:002011-02-04T13:58:47.751-06:00The PK link above highlights some of the differenc...The PK link above highlights some of the differences of opinion. As usual, PK blames Chinese demand (just as he did in 2008's "Grains Gone Wild" column). Apparently Chinese people stopped eating meat in the second half of 2008. PK then goes on to attribute current commodity speculation to Chinese individuals--and lays the blame for that on China's foreign exchange policy... not Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-60441179799253730742011-02-03T18:12:36.705-06:002011-02-03T18:12:36.705-06:00David
The French, always the paladin of emerging m...David<br />The French, always the paladin of emerging markets, suggest "more regulation on commodities markets (against "speculative activities")!!!João Marcushttps://www.blogger.com/profile/13658264244033012660noreply@blogger.com