International Investing

BusinessWeek speculates about the consequences of higher commodity prices:

Governments are also getting nervous. They’re taking various measures to restrain price increases and secure supplies. For instance, according to the Asian Development Bank’s latest outlook, import duties on food and cereals are being temporarily cut in some countries and in others exports are being taxed or restricted to increase domestic supplies of food. A number of countries, like China, are also putting price controls on food. “Artificial restraints on prices and inflation today that blunt market incentives are only likely to lead to higher prices in the future,” worry the authors of the Asian Development Report for 2008.