Faculty News

Prof. Nouriel Roubini explains why he believes the "commodities supercycle" has ended

Excerpt from Reuters -- "There are a number of factors why the commodities supercycle is probably over. First of all, China is slowing down. The growth rate may be as low as 6 or 7% in the next few years and the growth rate is going to be less resource intensive as they move away from capital intensive to consumer society... Additionally, we have a slow recovery in advanced economies and monetary policy is going to be tightened, however gradually. The Fed eventually is going to start tapering, eventually is going to go away from zero policy rates and that increase in short and long rates is going to soften commodity prices as well."

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Additional coverage appeared on the Economic Times.