• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 12 hours End of EV Subsidies?
  • 11 hours Maersk's COO statment.
  • 2 hours Permian Suicide
  • 7 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 7 hours Asian stocks down
  • 17 hours Citi cuts Apple's price target
  • 14 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 55 mins USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 15 hours Regular Gas dropped to $2.21 per gallon today
  • 8 hours Price Decline in Chinese Solar Panels
  • 5 hours IT IS FINISHED. OPEC Victorious
  • 10 hours Trump accuses Google Of Hiding 'Fair Media' Coverage of him
Alt Text

Green Bonds Are A Huge Boost For Renewables

The growing popularity of ‘green…

Alt Text

Clean Energy Stocks Outperform Oil And Gas

Green energy stocks saw tremendous…

David Beckworth

David Beckworth

David writes the Blog: Macro Market Musings

More Info

Trending Discussions

Bernanke's Response To Commodity Price Inflation Accusation

Bernanke responds today to the accusation that the commodity price boom is being caused by U.S. monetary policy:

Supply and demand abroad for commodities, not U.S. monetary policy, are causing higher food and energy prices rattling much of the world, Federal Reserve Chairman Ben Bernanke said Thursday.  “The most important development globally is that the world is growing more quickly, particularly in emerging markets,” Bernanke said in response to a question after his speech at the National Press Club...“I think it’s entirely unfair to attribute excess demand in emerging markets to U.S. monetary policy,” Bernanke said. Those nations can use their own monetary policy and adjust exchange rates to deal with their inflation problems, he said. “It’s really up to emerging markets to find appropriate tools to balance their own growth.”

Scott Sumner and Paul Krugman would agree with this assessment.  Here is an update figure from an earlier post that shows the year-on-year growth rates of industrial production in emerging economies and the CRB Commodity Spot Index:

Commodity Prices & Industrial Production
Sources: NBEPA , Moody's FreeLunch.com

This is strong evidence supporting the Bernanke view.  What evidence do the critics have supporting their view?

By David Beckworth

Source: Macro Market Musings




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
-->