TY - BOOK ID - 136936776 TI - Financialization in Commodity Markets AU - Chari, V.V. AU - Christiano, Lawrence. AU - National Bureau of Economic Research. PY - 2017 PB - Cambridge, Mass. National Bureau of Economic Research DB - UniCat UR - https://www.unicat.be/uniCat?func=search&query=sysid:136936776 AB - Recent experience has given rise to the financialization view: increased trading in commodity fu--tures markets leads to an increase in the level and volatility of spot prices. We construct a large panel data set which includes commodities with and without futures markets. The data do not support the financialization view. We also find that futures returns are positively correlated with open interest and not correlated with net financial flows. The facts on spot and futures prices and volume necessitate a new view, which we develop, of the economic role of futures markets. Our model is consistent with the key facts. ER -