Economics and Finance of Commodity Price Shocks

<p>The behaviour of commodity prices never ceases to marvel economists financial analysts industry experts and policymakers. Unexpected swings in commodity prices used to occur infrequently but have now become a permanent feature of global commodity markets. This book is about modelling commodity price shocks. It is intended to provide insights into the theoretical conceptual and empirical modelling of the underlying causes of global commodity price shocks. </p><p>Three main objectives motivated the writing of this book. First to provide a variety of modelling frameworks for documenting the frequency and intensity of commodity price shocks. Second to evaluate existing approaches used for forecasting large movements in future commodity prices. Third to cover a wide range and aspects of global commodities including currencies rare–hard–lustrous transition metals agricultural commodities energy and health pandemics. Some attempts have already been made towards modelling commodity price shocks. However most tend to narrowly focus on a subset of commodity markets i.e. agricultural commodities market and/or the energy market. In this book the author moves the needle forward by operationalizing different models which allow researchers to identify the underlying causes and effects of commodity price shocks. Readers also learn about different commodity price forecasting models. </p><p>The author presents the topics to readers assuming less prior or specialist knowledge. Thus the book is accessible to industry analysts researchers undergraduate and graduate students in economics and financial economics academic and professional economists investors and financial professionals working in different sectors of the commodity markets. Another advantage of the book’s approach is that readers are not only exposed to several innovative modelling techniques to add to their modelling toolbox but are also exposed to diverse empirical applications of the techniques presented.</p>