New answers tagged economics
Oil. http://www.investopedia.com/university/strength/strength4.asp Bond yields are correlated with long run expectations of energy prices. A momentary spike in real energy price - such as occurred in the early 30s or late 2000s - will correspond with a small spike in yields, while a more lasting increase as in the 70s and early 80s will be more noticeable....
One important fear after World War II was renewed deflation, because of the "wind down" of government spending after the war, and a fear of rising unemployment with the return of the soldiers to the U.S. economy. Such fears were a major depressant on interest rates. The thing that the deflationists had overlooked was the 25% national savings rate during the ...
Henry Ford first ran his "automobile" on ethanol so I think any Government policy to burn corn is highly suspect at best. Using corn instead of wood for fueling a stove for cooking was quite common too "in days of yore." Again I wouldn't call this a "policy" however.
You don't have to know, it just happens. Its basic economics. Supply and demand are intersecting diagonal curves, the intersection of which is the market price. As supply of an item goes up, you shove its diagonal curve higher up the supply axis (to the right in the graph above). That puts the intersection between the two lower on the price axis. In short,...
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