Derivatives Markets and Global Food Security
Blogging at TripleCrisis, Sasha Breger Bush offers some important insights into the role derivatives markets have played in the global food crisis. As she notes, even the relatively conservative estimates of the World Bank now concede that as much as 20 percent of the increase in global food prices in 2011 was due to speculative trading. And while this alone is cause for concern, there has been increasing discussion of relying on derivatives markets in lieu of more traditional mechanisms like buffer stocks and grain reserves as a mechanism to alleviate price fluctuations and shocks. I’m looking forward to reading her book.