In Search of Sweet Liquid Gold

IMF Podcasts, June 27, 2013

Source details

Publication: IMF podcast episode "In Search of Sweet Liquid Gold"
Date: June 27, 2013
Central question: Are cartels an effective tool for countries to control commodity prices to maximize income or protect key domestic industries, and what are the trade-offs?
Case used to explore the question: the maple syrup industry.

Many countries create cartels to control the price of important commodities because they want to maximize their income or protect key domestic industries.
The use of cartels is criticized for causing higher prices for consumers.
The episode investigates the pros and cons of cartels through the example of the maple syrup industry.
Specific industry detail highlighted: boiling maple sap to turn into syrup; the supply of this product is heavily regulated by the global strategic reserve (Photo: Ury/Corbis).

Example purpose: to illuminate practical implications of cartelization and supply management on price, producer incomes, and consumer costs.
Industry practice noted: supply regulation via a global strategic reserve.

Jacqueline Deslauriers, IMF, Communications Department (featured contributor)
Behind the mic:
- Bruce Edwards — International Monetary Fund; produces the IMF podcast program; described as an award-winning audio producer and journalist with experience covering armed conflicts, social unrest, and natural disasters; aims to showcase economists’ research in IMF podcasts.
- Rhoda Metcalfe — independent journalist and audio producer.