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As the introductory textbook to economics by Nobel Prize Paul Samuelson, who served several generations of students, including mine, said: "It is easy to teach economics to a parrot. Two words are enough: supply and demand". These two
The Parrot Says That Commodity Prices Will Rise
Summary
- In 2023, both the demand and supply sides point to upward pressure across much of the set of commodity prices.
- The limits of lack of supply are visible in almost all segments, with stocks at operating levels in a critical situation and/or production capacity used to the limit.
- Not all commodity prices will necessarily move up. As far as energy, metals, and minerals are concerned, the parrot is likely looking up at this point.
Otaviano Canuto, based in Washington, D.C area, is a senior fellow at the Policy Center for the New South, professor at George Washington University, principal of the Center for Macroeconomics and Development and a non-resident senior fellow at Brookings Institution. He is a former vice-president and a former executive director at the World Bank, a former executive director at the International Monetary Fund and a former vice-president at the Inter-American Development Bank. He is also a former deputy minister for international affairs at Brazil’s Ministry of Finance and a former professor of economics at University of São Paulo and University of Campinas, Brazil.He has authored and co-edited 8 books and over 160 book chapters and academic articles, and is a frequent contributor to numerous blogs and periodicals.
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