Tuesday, February 15, 2011

A boon for U.S. agriculture?

We used to teach about "cobweb dynamics." I wonder if that is at root here, where the price jumps will trigger a substantial increase in supply, which will lower price, and then another demand spike, etc. Or will commodity prices trend upwards over the next several years? I'm not one to forecast these things, but if we are a net exporter in many of these areas should it be a trend we should be happy about that.

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