Are lower commodity prices a good thing?
This blog by Joseph Glauber , Senior Research Fellow at IFPRI, asks the question: are lower prices a good thing for the world? The author highlights that lower food prices could mean that households will have more money to spend on food and other household expenditures, but the impact for many will likely be small. In many developing countries, research suggests that consumers are often insulated from world prices. Lower crop and livestock prices mean lower income for rural households dependent on agriculture. While much progress has been made through the WTO in reforming agricultural policies, distortionary agricultural policies remain in many developed countries and, more recently, in some emerging developing countries. The author highlights the importance making further progress in disciplining and limiting those measures.