Chapter

The Consumption Terms of Trade and Commodity Prices

Martin Berka and Mario J. Crucini

in Commodity Prices and Markets

Published by University of Chicago Press

Published in print March 2011 | ISBN: 9780226386898
Published online February 2013 | e-ISBN: 9780226386904 | DOI: http://dx.doi.org/10.7208/chicago/9780226386904.003.0005
The Consumption Terms of Trade and Commodity Prices

Show Summary Details

Preview

This chapter conducts a forensic analysis of the sources of terms of trade variation of thirty-eight countries, over the period 1990 to 2005. The microprice data from the Economist Intelligence Unit (EIU) is used to parse the variance of the aggregate terms of trade into the contributions of individual goods. The commodity-level retail price inflation and price level inflation for the world as a whole is studied. This is accomplished by averaging U.S. dollar prices of individual goods and services across as many cities as available in the Economist Intelligence Unit retail price survey, the source of the consumer price data used here. The standard deviations of these commodity-level inflation rates range from a low of 3.7% to a high of 11%. The consumption terms of trade at local prices using local retail prices to measure the import and export prices rather than world prices are also elaborated.

Keywords: trade; commodity prices; Economist Intelligence Unit; EIU; inflation rates; retail prices; export prices

Chapter.  11567 words.  Illustrated.

Subjects: Business and Management

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.