Interest Rates and Commodity Prices

The theory of storage and arbitrage approaches fully incorporate nominal interest rates in far-near commodity price spreads Alternative frameworks admit a relationship between interest rates and commodity own rates of interest and as a result the commodity price spread would not completely incorporate the nominal interest rate This study examines the Views on interest rate-commodlty price relationships, the potential role of nonneutralities, and empirical evidence on the relationships The evidence does not support the hypothesis of a close relationship between commodity own rates and the real interest rate


Issue Date:
1989
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/138240
PURL Identifier:
http://purl.umn.edu/138240
Published in:
Journal of Agricultural Economics Research, Volume 41, Number 2
Total Pages:
7




 Record created 2017-04-01, last modified 2018-01-22

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