Food, Financial Crises, and Complex Derivatives : A Tale of High Stakes Innovation and Diversification
The 2008 food price crisis was an integral part of the financial crisis. In fact, the food price crisis was the second crisis in a chain of events that began in 2007 with the mortgage crisis, and culminated in the worst financial crisis since the G...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2011/11/15462067/food-financial-crises-complex-derivatives-tale-high-stakes-innovation-diversification http://hdl.handle.net/10986/10071 |
| Summary: | The 2008 food price crisis was an
integral part of the financial crisis. In fact, the food
price crisis was the second crisis in a chain of events that
began in 2007 with the mortgage crisis, and culminated in
the worst financial crisis since the Great Depression.
Contrary to what was generally believed in 2008, developing
countries, particularly food-importing countries, were part
of the early wave of the financial crisis via food price
increases, and later suffered another wave via the real
sector. The events leading up to the food crisis were global
and complex in nature. As a result, as the G-20 discusses
solutions to the financial crisis, any new framework must
include developing countries, especially low-income
countries. In addition, developing countries, especially in
Africa, must pay close attention to the work of the
Financial Stability Board (FSB) and its recommendations on
financial market reform, and over-the-counter (OTC)
derivatives in particular, because these reforms will have
important consequences for their housing, food, fuel,
financial markets, and ultimately their growth and poverty
reduction objectives. |
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