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Monetary Expansionism, Global Commodity Prices, and Global Inequality

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  • Kim, Jongchul

Abstract

An early analysis of the imperialist implications of the surge of global commodity prices was conducted in 2014 by Jonathan Nitzan and Shimshon Bichler. However, their analysis did not consider how the US monetary and fiscal expansionist policies have contributed to the rise of global commodity prices. This article fills this gap. Arguably, under the current international fiat money system established in the early 1970s, the US has had the opportunity to use artificial money-creation mechanisms to enjoy the wealth produced by people outside the US without cost. This article argues that the US monetary and fiscal expansionist policies, including quantitative easing, are cases where the US takes advantage of such an opportunity and that the free transfer of wealth is a cause of the surge in global commodity prices.

Suggested Citation

  • Kim, Jongchul, 2025. "Monetary Expansionism, Global Commodity Prices, and Global Inequality," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 16(1, Spring), pages 105-136.
    • Handle: RePEc:zbw:espost:314455
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    References listed on IDEAS

    as
    1. Robert B. Barsky & Lutz Kilian, 2004. "Oil and the Macroeconomy Since the 1970s," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 115-134, Fall.
    2. Leanne J. Ussher & Armin Haas & Klaus Töpfer & Carlo C. Jaeger, 2018. "Keynes and the international monetary system: Time for a tabular standard?," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 25(1), pages 1-35, January.
    3. Leanne Ussher, 2009. "Global Imbalances and the Key Currency Regime: The Case for a Commodity Reserve Currency," Review of Political Economy, Taylor & Francis Journals, vol. 21(3), pages 403-421.
    4. Jongchul Kim, 2011. "How modern banking originated: The London goldsmith-bankers' institutionalisation of trust," Business History, Taylor & Francis Journals, vol. 53(6), pages 939-959, October.
    5. Bhar, Ramaprasad & Malliaris, A.G., 2011. "Oil prices and the impact of the financial crisis of 2007–2009," Energy Economics, Elsevier, vol. 33(6), pages 1049-1054.
    6. Kruger, Samuel, 2018. "The effect of mortgage securitization on foreclosure and modification," Journal of Financial Economics, Elsevier, vol. 129(3), pages 586-607.
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    More about this item

    Keywords

    capital as power; commodities; fiscal policy; imperialism; inflation; monetary policy; money; prices; United States;
    All these keywords.

    JEL classification:

    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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