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An evidence of speculation in Indian commodity markets

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  • Vijay Kumar Varadi

Abstract

Recent price surge in commodity markets has stipulated the intensity of various factors which lead the price volatility. There are multiple-factors namely, traditional supply and demand, excess global liquidity (i.e., monetary inflows in commodity markets), and financialization i.e., financial investors (portfolio investment and speculation) attitude. This paper is an attempt to investigate for the evidence and impact of speculation on volatility of commodity prices in Indian commodity markets. And, results exhibit that speculation has played decisive role in the commodity price bubble during the global crisis in India. --

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Bibliographic Info

Paper provided by ZBW - German National Library of Economics in its series EconStor Preprints with number 57430.

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Date of creation: 23 Apr 2012
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Handle: RePEc:zbw:esprep:57430

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Keywords: Commodity Markets; Speculation; Price Volatility; Financialization; Investor’s behaviour;

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  16. Jörg Mayer, 2009. "The Growing Interdependence Between Financial And Commodity Markets," UNCTAD Discussion Papers 195, United Nations Conference on Trade and Development.
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