Abstract
Background: Commodity markets are important since they influence price inflation, trade balances, and economic stability. Monetary, fiscal, trade, and environmental policies are some of the factors that influence commodity prices and market trends.
Aim: In this research, the effects of different economic policies on major commodities such as gold, crude oil, silver, and wheat are explored. This paper seeks to fill the above gaps by evaluating how these policies jointly influence market fluctuations and trading activities.
Method: In this study, descriptive data was collected and analysed on 72 observations which include the use of correlation index and multiple regression. The study also determined the impact of fluctuations in the economic policies on the price charged by the traders.
Download full abstract textIntroduction
The Global commodity markets play a vital role in the world economy by influencing inflation rates and impacting the dynamics of exchange markets. For instance, commodities such as oil, agriculture products are integral to the growth and stability of an economy. They have the potential to drive, contribute to or alleviate inflation, effect trade balances, and shape overall economic growth (Xiao, Su, and Ayub, 2022). It is therefore necessary to analyze how these aspects of commodity markets are influenced by economic policy. Monetary policy, fiscal policy, trade policy, and environmental policy are all key components of economic policy. Monetary policy, managed by central banks, involves regulating interest rates and controlling the money supply.
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Xiao, D., Su, J. and Ayub, B., 2022. Economic policy uncertainty and commodity market volatility: implications for economic recovery. Environmental Science and Pollution Research, 29(40), pp.60662-60673.
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