[Andrew Sheng] The long hot summer and markets’ ability to adapt
ViewpointsAug 1, 2012
The summer heat wave in the U.S. Corn Belt is going to hit grain production and has already raised food prices. So far, such price increases have yet not translated into global inflation, thanks to better food crop production in other parts of the world. Commodity traders today use satellite maps to track global crop production and weather conditions in order to predict commodity prices. In 1878, English economist William Stanley Jevons (1835-82) even suggested that economic cycles are related t