one - third over the past 12 months. when the price of any product moves sharply, the economist ’ s first instinct is to look for changes in the supply of or demand for that product. and indeed, the recent increase in commodity prices appears largely to be the result of the same factors that drove commodity prices higher throughout much of the past decade : strong gains in global demand that have not been met with commensurate increases in supply. from 2002 to 2008, a period of sustained increases in commodity prices, world economic activity registered its fastest pace of expansion in decades, rising at an average rate of about 4 - 1 / 2 percent per year. this impressive performance was led by the emerging and developing economies, where real activity expanded at a remarkable 7 percent per annum. the emerging market economies have likewise led the way in the recovery from the global financial crisis : from 2008 to 2010, real gross domestic product ( gdp ) rose cumulatively by about 10 percent in the emerging market economies even as gdp was essentially unchanged, on net, in the advanced economies. 3 naturally, increased economic activity in emerging market economies has increased global demand for raw materials. moreover, the heavy emphasis on industrial development in many emerging market economies has led their growth to be particularly intensive in the use of commodities, even as the consumption of commodities in advanced economies has stabilized or declined. for example, world oil consumption rose by 14 percent from 2000 to 2010 ; underlying this overall trend, however, was a 40 percent increase in oil use in emerging market economies and an outright decline of 4 - 1 / 2 percent in the advanced economies. in particular, u. s. oil consumption was about 2 - 1 / 2 percent lower in 2010 than in 2000, with net imports of oil down nearly 10 percent, even though u. s. real gdp rose by nearly 20 percent over that period. this dramatic shift in the sources of demand for commodities is not unique to oil. if anything, the pattern is even more striking for industrial metals, where double - digit percentage rates of decline in consumption by the advanced economies over the past decade have been overwhelmed by triple - digit percentage increases in consumption by the emerging market economies. 4 likewise, improving diets in the emerging market economies have significantly increased their demand for agricultural commodities. importantly, in noting these facts, i intend no criticism of emerging markets ; growth in those economies has conferred substantial economic benefits both within those countries and globally, and in any case, the consumption of raw materials relative to population

community development staff in the 12 reserve banks, their 24 branches, and the board of governors, the federal reserve system is able to monitor and respond to changes in the financial services industry while positively influencing policy that impacts low - and moderate - income consumers. changing demographics our collective work in the realm of financial inclusion is occurring within a landscape for financial services and consumer credit that is changing quickly. racial and ethnic diversification of the country presents opportunities for financial service providers that are attentive to the changing financial needs and preferences of consumers. rising immigration from developing countries, and the associated diversity of experience with formal financial services providers, will challenge the financial services industry to be more flexible and creative in reaching consumers. 11 hogarth, jeanne m. ; marianne a. hilgert, edwin lucio, ana cruz - taura, sibyl howell, jessica leveen - farr, elizabeth, mcquerry, juan sanchez, and wayne smith,. ( 2005 ). “ banking on remittances : increasing market efficiencies for consumers and financial institutions. ” promises and pitfalls – federal reserve system ’ s fourth community affairs research conference, 2005. bis central bankers ’ speeches to return to where we began – with teenagers – those of us that are privileged to share our days with them know how technology is absolutely central to their lives. their familiarity and comfort with online interaction, combined with their expectation of immediate, continuous, and universally accessible service, will likely inspire changes to traditional models of financial service delivery. traditional financial service providers that fail to keep pace with the latest technological innovations risk losing market share to innovators in this area. signs that younger americans are more tenuously attached to the traditional financial system are already apparent and it is important for policymakers to understand the implications of this trend for the financial futures of the next generation. 12 it may, in fact, turn out to be that the innovations in financial services outside the traditional banking system will best address the needs of lower - income americans. however, it is incumbent upon regulators to ensure that these products and services are safe, affordable, transparent, and easy to understand, regardless of the provider. in some cases, regulators may need to ban products that are inherently unfair or deceptive. in all cases, regulators must ensure that consumers are afforded meaningful protections with respect to any products that are offered in the financial marketplace. finally, regulators must also actively monitor the consumer financial market to guard against developments that might threaten the stability of