Oil Price - Always And Everywhere A Monetary Phenomenon?

We believe that the “Bernanke put” is the main culprit for the price premiums in the commodity sector. The US central bank has repeatedly pointed out the positive effects of higher share prices, although this could trigger unsolicited secondary effects. The improved wealth (and increased optimism) boosts the propensity to consume among households and the propensity to invest in the corporate sector, which in turn supports the economy. The improved growth perspectives also lead to a decline in risk aversion. Commodities, too, benefit…

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