Effects of Expansionary Monetary Policy on Agricultural Commodities Market

Agricultural commodities experienced a rise in prices during the first decade of 2000s. The literature shows that monetary policies adopted by developed economies can influence practically all economic indicators developing markets. This paper aims to evaluate effect selected policy measures on three agricultural commodities: soy, corn and sugar. Secondly, study analyzes price formation these period expansionary policy, order better understand how they are influenced unconventional instruments. central hypothesis is excessive liquidity created FED spills over emerging economies, boosting investment consumption there and, lastly, causing commodity cycle. Our data (January 2000–December 2019) support this prove capable impacting commodities’ prices, but different channels, due specificities each commodity. fact people have more capital credit obtained from loans seems sugar; soy highly exchange rates markets, not very responsive used variables, which might be high production U.S. protectionist government.