Misinterpreting commodity price swings can be damaging – BIS paper

commodities-1
Responding to commodity price moves can be a challenge for central banks

Central banks risk policy mistakes if they fail to distinguish the driving forces behind movements in commodity prices, a working paper published by the Bank for International Settlements says.

Misdiagnosing the source of a shock as global supply can lead central banks to employ the “conventional wisdom” of looking through the initial impact and responding only to second-round effects such as wages and inflation expectations. This can be less than optimal if the source was actually global

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: