By Commodities Now (Guest Post)
The dark cloud over the US economy has had a small silver lining for commodity prices in the form of renewed expectations of yet another bout of quantitative easing from the Fed and a lower dollar. However, Capital Economics think it is far too soon to expect QE3. What’s more, there is only so much that monetary policy could do to offset weakness of final demand for commodities, according to Julian Jessop of Capital Economics. Commodity prices have held up rather better than might have been expected given the recent run of bad news on the US economy, which has hit…
***This is a preview. Please click on the post title or go to http://www.econmatters.com for full content. ****
