Bericht

The commodity-finance nexus: Twin boom and double whammy

International commodity prices and capital inflows to developing countries are increasingly synchronized, subjecting commodity-dependent economies to double boom-bust cycles. On the one hand, there are a number of common monetary factors, notably international interest rates and the exchange rate of the dollar that influence commodity prices and capital inflows in the same direction. On the other hand, commodity prices and capital inflows reinforce each other through their influence on economic activity in developing countries. Capital inflows move pro-cyclically with commodity prices, aggravating both positive and negative external trade shocks. This synchronization has greatly heightened the vulnerability of commodity-dependent developing economies to global boom-bust cycles.

Language
Englisch

Bibliographic citation
Series: Research Paper ; No. 80

Classification
Sozialwissenschaften, Soziologie, Anthropologie
Subject
Rohstoffpreis
Kapitalmobilität
Konjunkturzusammenhang
Welt

Event
Geistige Schöpfung
(who)
Akyüz, Yılmaz
Event
Veröffentlichung
(who)
South Centre
(where)
Geneva
(when)
2017

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Bericht

Associated

  • Akyüz, Yılmaz
  • South Centre

Time of origin

  • 2017

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