The global economy periodically experiences steep movements in commodity prices, causing cyclic booms and busts. These are called commodity cycles, a complex process emerging from macroeconomic shocks, supply chain bottlenecks, and policy failures.
An adage from the 1960s points out each commodity cycle lasts for about seven years. Moreover, the lower commodity prices fall during a given trough, the higher they rebound in the subsequent crest. To help understand such phenomena and their implications better, this article will trace the history of commodity cycles from the 1970s to the 2020s and beyond.
