Skip to content

Demand Shocks Fuel Commodity Price Booms and Busts

Martin Stuermer

Abstract: Demand shocks due to rapid industrialization have driven commodity price booms throughout history. As periods of industrialization lose steam and supply catches up, busts follow after about 10 years. A new dataset of price and production levels of 12 commodities provides evidence of this behavior from 1870 to 2013.

Read the article | See all Economic Letter articles
Subscribe to Economic Letter