📚 Volume 30, Issue 1 📋 ID: 0lB6goQ

Authors

Luis Wagner , Ryu Lysenko

Department of Agricultural Economics, Shiraz University Shiraz, Iran.

Abstract

In the present study the effects of macroeconomic variables on agricultural relative prices in different time horizons were studied. Because of monthly time series data (agricultural price index, price index of service sector, industry price index, price index and exchange rates) during the period April 2002 to end the Persian date Isfand 2005 has been used and then, the annual time series data (data on price indices in agriculture, non-agricultural price index, interest rate, money supply and interest rates) over the period 1961 to 2004 were used. The effects of monetary variables on the response rate of prices of agricultural and non-agricultural (industry and services) than the inflation rate changes were analyzed using regression analysis and mass analysis, our findings indicate that monetary policy on price index and index price and non-agricultural sector (industry and services) is effective and money in the long-run neutrality hypothesis is rejected. The results also showed that short-term agricultural prices relative to non-agricultural sectors are adjusted faster than monetary shocks. The results for monthly and annual data, which indicate that agricultural prices respond quickly to changes in inflation is non-agricultural prices respond more quickly.
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📝 How to Cite

Luis Wagner , Ryu Lysenko (2023). "Effects of monetary policy and overshooting in agricultural prices in Iran". Wulfenia, 30(1).