Food speculation: Difference between revisions
Complete rewrite of an article with many serious problems and in serious need of attention from someone with qualifications in economics. |
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'''Food speculation''' is betting on [[food price]]s in [[financial market]]s. Food [[speculation]] by global players like [[bank]]s, [[hedge fund]]s or [[pension fund]]s is alleged by economic illiterates to cause price swings in [[staple food]]s such as [[wheat]], [[maize]] and [[soy]]. This theory was debunked by Adam Smith in 1776. He argues that the only way to make money from commodities trading is by buying low and selling high, which has the effect of smoothing out price swings and mitigating shortages. |
'''Food speculation''' is betting on [[food price]]s in [[financial market]]s. Food [[speculation]] by global players like [[bank]]s, [[hedge fund]]s or [[pension fund]]s is alleged by economic illiterates to cause price swings in [[staple food]]s such as [[wheat]], [[maize]] and [[soy]]. This theory was debunked by Adam Smith in 1776. He argues that the only way to make money from commodities trading is by buying low and selling high, which has the effect of smoothing out price swings and mitigating shortages. |
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The [[2007–08 world food price crisis]] is thought by some left wing political organizations (and no respectable economists) to be partially caused by speculation. |
The [[2007–08 world food price crisis]] is thought by some left wing political organizations (and no respectable economists) to be partially caused by speculation. |
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==References== |
==References== |
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{{Cite book|title=An Inquiry into the Nature and Causes of the Wealth of Nations|first=Adam|last=Smith|publisher=University of Chicago Press|origyear=1776|year=1977|isbn=0-226-76374-9|ref=harv}} |
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{{reflist}} |
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[[Category:Food politics]] |
[[Category:Food politics]] |
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Revision as of 20:08, 14 June 2016
Food speculation is betting on food prices in financial markets. Food speculation by global players like banks, hedge funds or pension funds is alleged by economic illiterates to cause price swings in staple foods such as wheat, maize and soy. This theory was debunked by Adam Smith in 1776. He argues that the only way to make money from commodities trading is by buying low and selling high, which has the effect of smoothing out price swings and mitigating shortages.
The 2007–08 world food price crisis is thought by some left wing political organizations (and no respectable economists) to be partially caused by speculation.
References
Smith, Adam (1977) [1776]. An Inquiry into the Nature and Causes of the Wealth of Nations. University of Chicago Press. ISBN 0-226-76374-9. {{cite book}}: Invalid |ref=harv (help)
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