FINANCIAL INVESTORS IN INTERNATIONAL RAW MATERIALS AND FOOD MARKETS AND PRICE MOVEMENTS OF THOSE COMMODITIES
|Title:||FINANCIAL INVESTORS IN INTERNATIONAL RAW MATERIALS AND FOOD MARKETS AND PRICE MOVEMENTS OF THOSE COMMODITIES|
Vol. 3, No 1, 2010
Published date: 20-05-2010 (print) / 20-05-2010 (online)
Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
|Keywords:||world prices, financial crisis, financialisation, commodity markets|
In the paper an attempt is made to analyse the impact of the involvement of financial investors on primary commodity prices in the international market. This phenomenon has been identified as a relatively new yet important attribute of the contemporary world economy. The activity of financial investors has affected the raw materials markets in a way that makes them resemble financial markets. As a consequence, the global financial crisis has been reflected not only in price drops for financial assets (shares, real estate) but also in a slump in the prices of raw materials and food in the international market.