The 2008 commodity price boom: did speculation play a role?

Östensson, Olle

doi:10.1007/s13563-011-0006-5

Cited by 6 publications

(2 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In this sense, our contribution is focused on the study of the behavior of the Bitcoin trading price in comparison to past financial bubbles. There are many studies that analyze the causes and effects of speculative bubbles by applying the study of these processes to different areas such as the commodity futures market (Östensson, 2012;Miffre and Brooks, 2013;Lucey and O'Connor, 2013;Wöckl, 2019), the real estate market (Dreger and Zhang, 2013), or agricultural prices (Adämmer and Bohl, 2015). Irwin et al (2009) studied the boom and bust of the commodity futures market before the Great Recession.…”

Section: Literature Reviewmentioning

confidence: 99%

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

Náñez Alonso,

Jorge-Vázquez,

Echarte Fernández

et al. 2024

Humanit Soc Sci Commun

View full text Add to dashboard Cite

A number of financial bubbles have occurred throughout history. The objective of this study was to identify the main similarities between Bitcoin price behavior during bubble periods and a number of historical bubbles. Once this had been carried out, we aimed to determine whether the solutions adopted in the past would be effective in the present to reduce investors’ risk in this digital asset. This study brings a new approach, as studies have previously been conducted analyzing the similarity of Bitcoin bubbles to other bubbles individually, but these were not conducted in such a broad manner, addressing different types of bubbles, and over such a broad time period. Starting from a dataset with 9967 records, a combined methodology was used. This consisted of an analysis of the standard deviations, the growth rates of the prices of the assets involved, the percentage increase in asset prices from the origin of the bubble to its peak and its fundamental value, and, finally, the bubble index. Lastly, correlation statistical analysis was performed. The results obtained from the combination of the above methods reveal the existence of certain similarities between the Bitcoin bubbles (2011, 2013, 2017, and 2021) and the tulip bubble (1634–1637) and the Mississippi bubble (1719–1720). We find that the vast majority of the measures taken to avoid past bubbles will not be effective now; this is due to the digital and decentralized nature of Bitcoin. A limitation of the study is the difficulty in making a comparison between bubbles that occurred at different historical points in time. However, the results obtained shed light and provide guidance on the actions to be taken by regulators to ensure the protection of investors in this digital asset.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

Náñez Alonso,

Jorge-Vázquez,

Echarte Fernández

et al. 2024

Humanit Soc Sci Commun

View full text Add to dashboard Cite

show abstract

“…The analysis has a lot to recommend it, not least because it describes in meticulous fashion the involvement of the Trader-Core firms in the contested re-regulation of the commodities futures market. However, given the lack of quantitative data on the major grain traders' activity in agricultural commodity futures, and given the fact that most scholarly analyses appear to be inconclusive or even sceptical in regard to whether 'speculation' impacts food prices even in the short-term (see Headey and Fan 2011;Sanders and Irwin 2011;Östensson 2012; but see also Lagi et al, 2011), I prefer to advance an alternative explanation that hinges on the concept of institutionalised waste. This concept was introduced by Veblen and developed by Paul Baran and Paul Sweezy to denote the 'formula[e] for maintaining scarcity in the midst of potential plenty' (Baran and Sweezy 1966: 337).…”

Section: The Formation Of the Agro-trader Nexus And The Biofuels Boommentioning

confidence: 99%

Food Price Inflation as Redistribution: Towards a New Analysis of Corporate Power in the World Food System

Baines

2013

New Political Economy

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

show abstract

Copper price determination: fundamentals versus non-fundamentals

Guzmán

Silva²

2017

Miner Econ

View full text Add to dashboard Cite

The 2008 commodity price boom: did speculation play a role?

Cited by 6 publications

References 4 publications

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

Food Price Inflation as Redistribution: Towards a New Analysis of Corporate Power in the World Food System

Copper price determination: fundamentals versus non-fundamentals

Contact Info

Product

Resources

About