Commodity Prices in Boom-and-Bust Cycles

The sharp and widespread increase in most commodity prices has alarmed the world and raised questions around the sustainability of our economies. As shown in this ECMI Commentary, the reasons for this dramatic rise are multiple, and engaging in a witch-hunt benefits neither the market as a whole nor our economies. Solutions need to be more differentiated and oriented towards two factors: preventing price manipulation (through controls on net positions and on anti-competitive market structures) and fostering sustainability.

ECMI will be running a task force to study price formation in spot and future markets, starting September 2011, together with the Centre for European Policy Studies (CEPS) in Brussels. To learn more about this task force and subscribe please follow the link: Commodities Task Force.