Tag Archives | volatility
Economics, Industry and Trade

Volatility linkages between energy and food prices

Volatility linkages between energy and food prices
Energy, especially from oil and its derivatives, is a key factor of production in an economy and is widely used in different sectors—including transportation, agriculture, and industry—in households, and as a raw material in the production of petrochemical products. As such, energy has great value and affects other commodity prices. Since the first oil price shock of 1973, examining the effects of changes in energy prices, especially of oil, on macro and microeconomic levels has become one of the most fundamental issues of energy economics (Taghizadeh-Hesary et al. 2013).

Economics, Finance, Trade

How does exchange rate volatility affect value added and gross trade?

How does exchange rate volatility affect value added and gross trade?
The rise of Donald Trump has reignited the debate on the link between exchange rates and trade. The Trump administration has blamed the exchange rate policies of the People’s Republic of China (PRC), Japan, and Germany for the current account deficit in the United States (US), and the president’s Twitter posts have put many major currencies on a roller coaster ride. Now, policy makers around the globe are concerned about the negative impact of exchange rate volatility on world trade.