The Great Price Spike Of 93

Excerpt from The "Great" Price Spike of '93: An Analysis of Lumber and Stumpage Prices in the Pacific Northwest An example closer to home is the price of fruit and vegetables, such as oranges or lettuce, when sudden changes in weather threaten to destroy entire crops. Other agri cultural commodities are similarly affected. Although price spikes like this often are associated with price increases, it does not always have to be that way. Sudden de creases are equally possible. A pointed example, albeit not from a commodity market, is the incredible 1-day decline of the stock market on October 19, 1987. Erratic price behavior is an issue that can greatly affect people's lives. But there are two relevant questions: Why are prices so important that we should worry about these rapid changes? And What (or who) is to blame for these rapid changes? The answer to the first question lies in the role of prices in the economy. Prices are the ultimate regulator of everything people do. As such, when prices change rapidly, we have to adapt our behavior quickly to ensure that we do not experience rapid changes in our own welfare. Sometimes, we cannot adapt quickly enough, and sometimes it is im possible to adapt. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.