The tariffs, export restrictions and other ad-hoc measures adopted by some countries may also have aggravated market imbalances. The second factor driving these fluctuations in commodity prices is global monetary conditions. Accommodative monetary conditions, especially in the aftermath of the global financial crisis, seem to have contributed to the rise in commodity prices in various ways (figure 3).
In particular, monetary policy affects aggregate demand in general, which in turn influences the demand for commodities. On top of these two factors, the third driver is what might be described as “financialization” (figure 4).