Description
The goal of this project is to show if there exists a relationship between commodity prices and the unemployment rate of the United States. As commodity prices rise, we would expect to be in an expansionary business cycle, leading to a lower unemployment rate. Thus, the prices of commodities and unemployment would be negatively correlated. I will be gathering data from the World Bank and Kaggle. If this research shows the commodity prices indicated future unemployment rates, then the Fed and governments should use the pricing of commodities in order to make decisions on policy.
Commodity Prices as an Indicator of Unemployment
The goal of this project is to show if there exists a relationship between commodity prices and the unemployment rate of the United States. As commodity prices rise, we would expect to be in an expansionary business cycle, leading to a lower unemployment rate. Thus, the prices of commodities and unemployment would be negatively correlated. I will be gathering data from the World Bank and Kaggle. If this research shows the commodity prices indicated future unemployment rates, then the Fed and governments should use the pricing of commodities in order to make decisions on policy.