The Financialization Of Food: Why Dinner Last Night Became So Political
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This thesis explores the effects of the financialization of food on agricultural commodity markets. The financialization of food refers to the surge in commodity derivatives trading by financial traders that followed the 2000 deregulation of commodity markets. Most existing literature discusses this financialization in regard to the 2008 food price crisis, as some believe this surge in agricultural commodity investment caused the sharp food price spikes in 2008. A literary analysis of existing scholarship surrounding commodity investment’s role in the food price crisis is performed, with the resulting findings leading to conclusions on the effects of the financialization on agricultural derivative markets. This paper finds that the increased investment in agricultural commodity derivatives that followed the 2000 deregulation of commodity trading negatively affected agricultural commodity markets by facilitating the emergence of a highly politicized market. In order to address these negative effects, regulation is purposed that hopes to ease the political tensions within agricultural commodity markets.