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The Great Commodities Depression is a term used in economic history to describe the protracted declines in the prices of raw materials roughly from 1982–1998. The analysis of this period is based on the work of Robert Solow and is rooted in macroeconomic theories of trade including the Mundell-Fleming model.

“The volatility and interest rates found its way into commodity inputs and all sectors of the world economy."

Commodity Trading Manual, By Patrick J. Catania, Chicago Board of Trade, Peter Alonzi, Chicago Board of Trade Market & Product

Hence, in the case of an economic crisis commodities prices follow the trends in exchange rate (coupled) and its prices decrease in case there are downward trends of diminishing Money Supply.

FX impacts commodities prices and so does MS (the advent of a crises will pull commodities $’s down).

For more details regarding the impacts of an Economic depression in the Commodities markets refer to... International Commodity Agreements: A Legal Study By B. S. Chimni Published by Routledge, 1987 ISBN 0709954204, 9780709954200 299 pages








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