Please use this identifier to cite or link to this item:
Title: The global food crisis : supply and demand revisited
Authors: Sammut, Vince
Keywords: Food supply -- Malta
Food -- Economic aspects -- Malta
Food prices
Inflation (Finance) -- Malta
Issue Date: 2015
Publisher: University of Malta. Junior College
Citation: Symposia Melitensia. 2015, Vol.10, p. 168-197
Abstract: This study aims to show that the volatility in food prices between 2008 and 2011 cannot be explained merely by the market fundamentals of demand and supply. While global changes in demand and supply are bringing about radical changes to the food equation, evidence shows that market failure in the world grain market aggravated the problem. Excess liquidity, brought about by monetary growth policies after the subprime crises and financial meltdown in 2008, has stimulated speculation and hoarding. Strong incentives for financial operators to find better returns in places like the commodities market is attested by the six-fold increase in the number of ‘derivatives’ contracts made between 2002 and 2008. Furthermore, agriculture is one of the most heavily subsidized, protected, and distorted markets in the world. This is a key reason behind a decade long lack of progress in the Doha Round of the World Trade Organization (WTO). This study investigates the hypothesis that speculative activities are a major source of volatility in the agricultural commodities market and that this has significantly contributed to price inflation. It also explores Malta’s possible involvement in food commodity speculation, albeit on a small scale.
ISSN: 1812-7509
Appears in Collections:Scholarly Works - JCEcon
SymMel, 2015, Volume 10
SymMel, 2015, Volume 10

Files in This Item:
File Description SizeFormat 
The Global Food Crisis - Supply and Demand Revisited.pdf1.27 MBAdobe PDFView/Open

Items in OAR@UM are protected by copyright, with all rights reserved, unless otherwise indicated.