Think the Fed is to blame for high food and energy prices?
It’s not. It’s all about the fundamental drivers of demand.
This chart (via Mark Thoma) is pretty self-explanatory showing that world industrial production and commodity prices are pretty closely linked.
Now if you want to say world industrial production is caused by Fed pumping, that’s one thing, but then you’d have to also say that Fed pumping works in creating economic activity.
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