A review of price and productivity trends
All commodity producers suffer from declining terms of trade. This situation has been occurring since the industrial revolution, which provided the catalyst for specialisation across a range of sectors in the economy. Efficiency gains in agriculture have been a trigger for the industrialisation and subsequent urbanisation that is a feature of modern economies
There is no reason to consider that this trend is about to change. It is inexorable. It occurs because productivity gains enable the (more)...
