Monday, November 23, 2009

Financialization of Commodity Markets: Nonlinear Consequences from Heterogeneous

Just read quite interesting paper form central bank of Argentina. Authors’ claims that that high discrepancies between spot and fundamental commodities prices tend to be corrected relatively fast, while small misalignments tend to persist over time without any endogenous correcting force taking place. This is quite non-intuitive conclusion. Isn’t it?

No comments: