Quote of the Day

Don't blame speculators for the food crisis: It was already here when they arrived. Rather thank them for a wake-up call. Financial markets are driving today's prices to match expectations of tomorrow's values – the consensus of countless investors and producers is that the era of surpluses and cheap food is over. Yet even a credible promise that G-8 protectionist policies will be reversed would raise output down the road and drop prices at the corner grocery counter overnight. -- AEI's Adam Lerrick, explaining that subsidies, not free markets, cause a misallocation of food.

Economics and Markets Posted by jk at July 8, 2008 5:45 PM