Commodities Conundrum: The U.S. & Japan Battle a Byproduct of Emerging Market Growth Podcast

Thursday, September 25, 2008


Left to right: Lewis Alexander, Brad Setser, Hiroyuki Tarumi, Jennifer Ablan.




The global credit crisis and sub-prime mortgage market woes have resulted in slowed growth – even recession by some definitions - in the U.S. and other developed nations. In contrast to past recessions in 1990 and 2001, the current period is characterized by markedly inflated prices for commodities, raising the specter of stagflation, not seen in the U.S. since the 1970s. While the root of the current global economic downturn may lie in the U.S.’s deflated housing market, Japan faces a similarly bleak forecast – rising prices for energy, raw materials and food, accompanied by slow or even negative growth. While the developed world may see improved economic growth and commodities conservation efforts, as long as emerging economies like China and India continue rapid industrialization, commodity prices will continue to rise. Our panel examines the relationship between growth in the developing world and skyrocketing commodities prices and assesses policy options for the world’s two largest economies to combat rising prices.

Speakers
Lewis Alexander, Chief Economist, Citi
Brad Setser, Fellow for Geoeconomics, Council on Foreign Relations
Hiroyuki Tarumi, Executive Vice President, Mitsubishi International Corporation

Moderator
Jennifer Ablan, Senior Investment Correspondent, Reuters, LLC