Are large-scale asset purchases fueling the rise in commodity prices?
AbstractPrices of commodities including metals, energy, and food have been rising at double-digit rates in recent months. Some critics argue that Federal Reserve purchases of long-term assets are fueling this rise by maintaining an excessively expansionary monetary stance. However, daily data indicate that Federal Reserve announcements of large-scale asset purchases tended to lower commodity prices even as long-term interest rates and the value of the dollar declined.
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Bibliographic InfoArticle provided by Federal Reserve Bank of San Francisco in its journal FRBSF Economic Letter.
Volume (Year): (2011)
Issue (Month): apr4 ()
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- Joseph Gagnon & Matthew Raskin & Julie Remache & Brian Sack, 2011. "The Financial Market Effects of the Federal Reserve's Large-Scale Asset Purchases," International Journal of Central Banking, International Journal of Central Banking, vol. 7(1), pages 3-43, March.
- Tamim Bayoumi & Trung Bui, 2011. "Unforeseen Events Wait Lurking: Estimating Policy Spillovers From U.S. To Foreign Asset Prices," IMF Working Papers 11/183, International Monetary Fund.
- Glick, Reuven & Leduc, Sylvain, 2012.
"Central bank announcements of asset purchases and the impact on global financial and commodity markets,"
Journal of International Money and Finance,
Elsevier, vol. 31(8), pages 2078-2101.
- Reuven Glick & Sylvain Leduc, 2011. "Central bank announcements of asset purchases and the impact on global financial and commodity markets," Working Paper Series 2011-30, Federal Reserve Bank of San Francisco.
- Gabriele Galati & John Lewis & Steven Poelhekke & Chen Zhou, 2011. "Have market views on the sustainability of fiscal burdens influenced monetary authorities' credibility?," DNB Working Papers 304, Netherlands Central Bank, Research Department.
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