Is There a Role for Commodity Prices in the Design of Monetary Policy? Some Empirical Evidence

Marquis, Milton H.; Cunningham, Steven R.

doi:10.2307/1060619

“…Hence, there is some doubt that commodity prices can be used effectively in formulating monetary policy because they tend to be subject to large and marketͲspecific shocks which may not have macroeconomic implications (Marquis and Cunningham, 1990;Cody and Mills, 1991). More importantly in our context and according to a more monetarist view, other researchers argue that commodity price movements are at least to some extent the result of monetary factors and, hence, the causality should run from monetary variables to commodity prices (Bessler, 1984;Pindyck and Rotemberg, 1990;and Hua, 1998).…”

mentioning

confidence: 74%

Effects of Global Liquidity on Commodity and Food Prices

Belke

¹

,

Bordon

²

,

Volz

³

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily refl ect those of the editors. Terms of use: Documents in Ruhr Economic Papers #323

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“…However, there is some doubt that commodity prices can be used effectively in formulating monetary policy because they tend to be subject to large and market-specific shocks which may not have macroeconomic implications (Marquis andCunningham, 1990, Cody andMills, 1991). More importantly in our context and according to a more monetarist view, other researchers (Bessler, 1984, Pindyck and Rotemberg, 1990, and Hua, 1998 argue that commodity price movements are at least to some extent the result of monetary factors and, hence, the causality should run from monetary variables to commodity prices.…”

Section: Overview Of the Literature And Theoretical Considerationsmentioning

confidence: 99%

Monetary policy, global liquidity and commodity price dynamics

Belke

¹

,

Bordon

²

,

Hendricks

³

2014

The North American Journal of Economics and Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily refl ect those of the editors. Terms of use: Documents in Ruhr Economic Papers #167

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“…We use a number of commodity price indices with the basic rationale being to see if there are similar results across these various indices. The selected series overlap with previous studies examining the relationship between commodity and consumer prices (Webb 1988, Marquis and Cunningham 1990, Furlong and Ingenito 1996.…”

Section: Datamentioning

confidence: 99%

“…Our paper, however, differs also from those contributions in the form of model and empirical methodology used. Other, US studies on the commodity price-consumer price relationship (Webb 1988, Marquis and Cunningham 1990, Cody and Mills 1991, Pecchenino 1992, Blomberg and Harris 1995, and Furlong and Ingenito 1996 focus less on the role of monetary policy in the relationship and more on the signalling or predictive power of commodity prices for consumer price inflation. These three building blocks concerning the behaviour of prices then suggest a number of testable hypotheses about inflation.…”

mentioning

confidence: 99%