Coupled with concerns over the possible disruptions of supply, this has led to sharp rises in the prices of international commodities. In addition, increased demand for food, as living standards among workers in emerging economies have improved, has combined with a growing interest in alternative energy to generate substantial rises in prices of foods such as grains.
There are obviously financial risks in doing this, but there are also potential benefits to the broader community. There are two main arguments against such involvement. The first is that financial institutions will change the way they operate if they think that the public sector will provide support, that these changes will make the system less stable.