The Financialization of Commodity Markets
By Ing-Haw Cheng. 2014
524 citations recorded by the source corpus.
The large inflow of investment capital to commodity futures markets in the past decade has generated a heated debate about whether financialization distorts commodity prices. Rather than focusing on the opposing views concerning whether investment flows caused a price bubble, we critically review academic studies through the perspective of how financial investors affect risk sharing and information discovery in commodity markets. We argue that financialization has substantially changed commodity markets through these mechanisms.
View Paper: https://www.semanticscholar.org/paper/1c00b6717a6fc57865fb0d14fec063806fbcb650
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- Seong‐Min Yoon
- Sang Hoon Kang
- Ron P. McIver
- Bernardina Algieri
- Arturo Leccadito
- Mohamed Arouri
- Stavros Degiannakis *
- Amine Lahiani
Citations in the corpus
- Assessing contagion risk from energy and non-energy commodity markets (2017, background): “E-mail address: b.algieri@unical.it (B. Algieri). highly debated question is whether fundamental factors related to supply and demand or new financial drivers dominate price formation and volatility in financialized commodity markets (Irwin and Sanders, 2012; Cheng and Xiong, 2014).”
- Dynamic spillover effects among crude oil, precious metal, and agricultural commodity futures markets (2017, background): “Furthermore, a significant number of commodities across the energy, metals, and agricultural sectors have experienced harmonized boom and bust cycles during the most recent financial crises (Cheng and Xiong, 2014; Cabrera and Schulz, 2016).”