Monetary Conditions and Metal Prices

The monetary easing of the past few years by the world’s major central banks through conventional and unconventional policies coincided with the longest and broadest commodity price boom since the Second World War. And not surprisingly, the impending normalization of monetary conditions has created...

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Bibliographic Details
Main Authors:	Baffes, John, Savescu, Cristina
Format:	Journal Article
Language:	en_US
Published:	Taylor & Francis 2014
Subjects:	commodity price boom interest rates metal prices monetary conditions
Online Access:	http://hdl.handle.net/10986/17117

id	okr-10986-17117
recordtype	oai_dc
spelling	okr-10986-171172021-04-23T14:03:34Z Monetary Conditions and Metal Prices Baffes, John Savescu, Cristina commodity price boom interest rates metal prices monetary conditions The monetary easing of the past few years by the world’s major central banks through conventional and unconventional policies coincided with the longest and broadest commodity price boom since the Second World War. And not surprisingly, the impending normalization of monetary conditions has created expectations of a likely reversal in commodity price trends. Based on a reduced form, price-determination model which accounts for all quantifiable sectoral and macroeconomic fundamentals, this note finds that the effect of short-term interest rates on metal prices is mixed and modest. But, changes in longer term rates have a positive and highly significant impact. The note also concludes that metal prices respond (in that order) to industrial production, input prices, US dollar movements and physical stocks of metals. 2014-02-19T20:03:19Z 2014-02-19T20:03:19Z 2014-01-27 Journal Article Applied Economics Letters 1350-4851 DOI:10.1080/13504851.2013.864029 http://hdl.handle.net/10986/17117 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor & Francis Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	commodity price boom interest rates metal prices monetary conditions
spellingShingle	commodity price boom interest rates metal prices monetary conditions Baffes, John Savescu, Cristina Monetary Conditions and Metal Prices
description	The monetary easing of the past few years by the world’s major central banks through conventional and unconventional policies coincided with the longest and broadest commodity price boom since the Second World War. And not surprisingly, the impending normalization of monetary conditions has created expectations of a likely reversal in commodity price trends. Based on a reduced form, price-determination model which accounts for all quantifiable sectoral and macroeconomic fundamentals, this note finds that the effect of short-term interest rates on metal prices is mixed and modest. But, changes in longer term rates have a positive and highly significant impact. The note also concludes that metal prices respond (in that order) to industrial production, input prices, US dollar movements and physical stocks of metals.
format	Journal Article
author	Baffes, John Savescu, Cristina
author_facet	Baffes, John Savescu, Cristina
author_sort	Baffes, John
title	Monetary Conditions and Metal Prices
title_short	Monetary Conditions and Metal Prices
title_full	Monetary Conditions and Metal Prices
title_fullStr	Monetary Conditions and Metal Prices
title_full_unstemmed	Monetary Conditions and Metal Prices
title_sort	monetary conditions and metal prices
publisher	Taylor & Francis
publishDate	2014
url	http://hdl.handle.net/10986/17117
_version_	1764435600343040000

Monetary Conditions and Metal Prices

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