FINANCIALIZATION OF COMMODITIES BEFORE AND AFTER THE GREAT FINANCIAL CRISIS

More than 12 years after the historical oil price spike, the financialization of commodities and the interaction among different types of commodity investors remain a hot topic. We review the early financialization literature and the main theoretical contributions to understand how market frictions can affect prices and liquidity. We introduce the debate on the de-financialization and offer insights about the multifaceted role of commercial investors in derivatives markets. Last, we show how other research streams, such as the analysis of the shale industry and of other financial derivatives than futures, might complement the view on the financialization of commodities.