The AP describes Lazear’s views on the role of biofuels on rising prices thus: “US disputes IMF on food prices”.
From the article by Desmond Butler:
WASHINGTON (AP) — The Bush administration is disputing the International Monetary Fund’s claim that increased production of biofuels is the biggest factor in rising food prices.
Charles Engel, Menzie’s colleague at the University of Wisconsin and my long-time personal friend, enters the world of blogging with some thoughts on whether we’re seeing a bubble in oil prices.
How speculation may be contributing to the most recent moves in oil prices.
Plants do it. Why not you?
The trend is clear: demand is down and complaints are up.
Judging from some of the reactions across the blogosphere (not to mention any number of our own dear readers), maybe I should take another stab at clarifying why I see the hand of the Federal Reserve in the most recent movements in oil and commodity prices.
I have been puzzled by the proposal for a tax holiday for gasoline purchases running from Memorial to Labor day (see [0], [1], [2]), with the objective of spurring the economy. First, the Federal tax is quite low, either in real or in relative terms. Second, the benefits that would accrue to consumers are probably pretty small, under reasonable assumptions.
West Texas Intermediate closed today above $115/barrel. Does that reflect changes in the fundamentals of world supply and demand? My answer is no.
How should a well-fed American react when some of the world’s poorest citizens in Haiti and Bangladesh riot over the rising price of food?
New bankruptcies as consumer sentiment deteriorates.