The Impacts of China's Monetary Policy and Demand Factors on Commodity Prices

Leqin Chen, Fordham University

Abstract

This paper aims to address three primary questions about China's influences on inter-national traded commodities. The focus of the commodities are Crude Oil and selected Metals. The rest question is whether China's monetary policy and demand factors have significant impacts on commodity prices. The findings are differentiated regarding different commodities as well as macroeconomic factors. The second question concerns the direction of the impacts. Expansionary Monetary policy is shown to have positive impact on commodity prices. Most of the Demand factors if significant, also produced positive impacts. These are consistent with our expectations. The third question is about the reliability of the significance of the impacts. Utilizing ME bootstrapping regressions, I bypassed the traditional significance assumptions and the more reliable significance results obtained here again depend on commodity type as well as the macroeconomic factors.

Subject Area

Economics

Recommended Citation

Chen, Leqin, "The Impacts of China's Monetary Policy and Demand Factors on Commodity Prices" (2019). ETD Collection for Fordham University. AAI13427406.
https://fordham.bepress.com/dissertations/AAI13427406

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