Not exact matches
Since that report came out, we can count another upside to the «China syndrome»: Canada weathered the recession better
than just about every other developed
economy, thanks in part to a quick recovery in emerging
economies and thus in
commodity prices.
«They helped cushion the blow on the
economy from the
commodity - price shock, which is of course better
than reacting after the fact,» Poloz said Wednesday.
Canada's
economy is more heavily dependent
than the U.S.'s on
commodities industries (think oil, mining, and timber) and on banking.
A
commodities boom has driven the Canadian dollar from a 62 cents US low up to parity, vaporizing any labour cost advantage we previously enjoyed over the U.S. and changing the structure of the
economy; at the margin, a Canadian worker adds far more to our
economy by extracting resources
than by building cars.
«The
economy here is much more diversified
than it was, say, 20 years ago and not as vulnerable to fluctuating
commodity prices,» explains Michael Kehoe of Fairfield Commercial Real Estate.
Other
commodity markets are behaving similarly because there is more supply
than a sluggish global
economy can absorb.
Thus, many emerging markets» growth rates in the next decade may be lower
than in the last — as may the outsize returns that investors realised from these
economies» financial assets (currencies, equities, bonds, and
commodities).
The surge in
commodity prices increased the terms of trade — the ratio of the price of exported goods to the price of imported goods — in both
economies, but the effect in Australia was far stronger
than what we saw:
Although the adjustment has been difficult, it has occurred over a longer period of time
than the boom in
commodity prices and, in general, Canada has not lost ground relative to other advanced
economies.
Alberta, like petro -
economies everywhere, will soon have more pressing problems
than simply managing the boom and bust cycles that define the
commodity world.
Conditions in the
economy are tighter now
than in the aftermath of the Asian crisis, the deflationary impulse from Asian producers is no longer present and world
commodity prices are rising.
We regard the greater stability in
commodity prices, along with a lessening of volatility in financial markets, as welcome, and believe it should provide a more stable platform for the global
economy, where growth remains acceptable, if lower
than desirable.
An appreciation of the exchange rate means that: the increase in the domestic currency price of
commodity exports will be less
than the increase in world
commodity prices; the income of the other tradable sector will fall; and real income gains flow to the broader
economy via the associated decline in the price of imports.
First, food and energy are a bigger part of CPI baskets in these countries
than in the developed
economies, so the impact there of the rises in
commodity prices is larger.
The eighth sure thing was that, with non-U.S. developed market and emerging market
economies generally growing at a slower pace
than the U.S.
economy (and with many emerging markets hurt by weak
commodity prices, slower growth in China's
economy, the Fed tightening monetary policy and a rising dollar), international developed market stocks would underperform U.S. stocks in 2017.
While we believe lower
commodity prices are a boon to the
economy over time, the abruptness of their price decline and a lingering «
commodity super-cycle» mentality likely caught many with more
commodity inventory (acquired at higher prices)
than proved desirable.
Since both capitalist and Marxist theory developed without consideration of the contribution of the natural world to the
economy, any consideration of nature as something other
than a
commodity falls outside the discipline of economics.
The Food & Beverage Manufacturing Business Group organised a meeting bringing Ministry of
Economy officials together with more
than 25 representatives from the UAE's food and beverage sector to discuss
commodity prices and consumer protection.
The 1980s African debt crisis was created by a variety of factors (much more complex
than the commonly attributed «poor African leadership» theory), including irresponsible over-lending by private creditors seeking high returns, the tendency towards one product
commodity economies, the targeting of developing countries for high interest loans, the global monetary shock of 1979 - 81, trade protectionism in Northern countries, the depreciation of the US dollar, the prolonged drought of 1981 - 84, among other factors (see African Debt Revisited).
According to government officials, the
economy would have recovered from the
commodities price shock experienced last year and expanded faster
than it did had the energy challenges been addressed earlier.
When the dollar suddenly strengthened beginning in 2014 and emerging markets decelerated more quickly
than expected, assets tied to industrial
commodities output or geared to the global
economy turned down together.
For example, many investors drawn to emerging market bond funds in recent years by payouts that were sometimes more
than twice that of U.S. Treasuries have experienced double - digit losses over the past 12 months, as growth prospects for emerging market
economies have begun to fade in the face of China's economic troubles and falling
commodity prices.
On the one hand, the return on investment is much different
than with stocks or bonds and the fluctuation of
commodity prices can be affected by things like supply and demand, inflation, and the condition of the
economy as a whole.
And the run - up in
commodity prices has more to do with the emergence of the
economies of India and China
than with anything related to ethanol policy.
Financial assets have grown by a large multiple of the real
economy — paper exchanging for paper is now 20 times greater
than exchanges of paper for real
commodities.
If the food value of a
commodity is less
than its fuel value, the market will move it into the energy
economy.
We should be under no illusion as to the impact of this fraud upon the national
economy, where it is estimated to cost the UK more
than # 50bn every year with crimes ranging from investment fraud schemes to the hacking of businesses to obtain that most valuable of
commodities, personal data.
Because of this, the Russian
economy fell into a deeper recession
than other
commodity - based
economies, weakening the ruble relative to the USD further
than what otherwise would have been expected.