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Economics Commons

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Marquette University

Economics Faculty Research and Publications

2015

BRIC

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Factoring Emerging Markets Into The Relationship Between Global Liquidity And Commodities, Steven Landgraf, Abdur Chowdhury Jan 2015

Factoring Emerging Markets Into The Relationship Between Global Liquidity And Commodities, Steven Landgraf, Abdur Chowdhury

Economics Faculty Research and Publications

Purpose – What caused the mid-2000s world commodity price “bubble” and the recent commodity price growth? Some have suggested that rapid global industrial growth over the past decade is the key driver of price growth. Others have argued that high commodity prices are a result of excessively loose monetary policy. The purpose of this paper is to extend the current research in this area by incorporating emerging economies, the BRIC (Brazil, Russia, India, and China) nations specifically, into global measures.

Design/methodology/approach – The paper uses a vector error correction (VEC) model and computes variance decomposition and impulse response functions (IRFs). …