Commodity Prices, Commodity Currencies, and Global Economic Developments

In this paper we seek to produce forecasts of commodity price movements that can systematically improve on naive statistical benchmarks, including factor-augmented models, and revisit the forecasting performance of changes in commodity currencies as efficient predictors of commodity prices. Published in NBER East Asia Seminar on Economics: Commodity Prices and Markets, 2011.

February 2011 · Jan J. J. Groen, Paolo A. Pesenti