Commodity price inflation caused by 'financialisation', RBI paper finds
Commodity price inflation in recent years has been driven by ‘financialisation' of commodity markets as well as fundamental factors, according to a Reserve Bank of India working paper, which also finds that "private liquidity" is inflationary but "official liquidity" is not – ostensibly due to the central bank's 'leaning against the wind' in the wake of the financial crisis.
Global Liquidity, Financialisation and Commodity Price Inflation by Kumar Rishabh and Somnath Sharma investigates the role
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