Long-run neutrality of money supply for food prices in Germany with policy effects
AbstractUsing a modified Fisher-Seater model with consideration of policy impacts, this paper attempts to tests the long-run neutrality of money supply on food prices in Germany after the launching of the Eurozone. The main findings include: (1) we can not reject the super neutrality of money for aggregated food prices; (2) However, staple food and its derived products – meat- are very sensitive to money supply, and their prices can increase to be much higher than money growth rate, perhaps due to speculative effects and demand effects; (3) Fresh or perishable products are usually less sensitive to money growth; (4) Most products decreased their prices after the launching of decoupling policy in Europe in 2003. The results can explain the links between money supply and food prices in a long run and also give insightful implications for the ongoing reform of CAP (Common Agricultural Policy) in Europe.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114640.
Date of creation: 2011
Date of revision:
money supply; German food prices; CAP; Agricultural and Food Policy; Agricultural Finance;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-15 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Meyer, Jochen & von Cramon-Taubadel, Stephan, 2002.
"Asymmetric Price Transmission: A Survey,"
2002 International Congress, August 28-31, 2002, Zaragoza, Spain
24822, European Association of Agricultural Economists.
- Chambers, Robert G. & Just, Richard E., 1982. "An investigation of the effect of monetary factors on agriculture," Journal of Monetary Economics, Elsevier, vol. 9(2), pages 235-247.
- Fisher, Mark E & Seater, John J, 1993. "Long-Run Neutrality and Superneutrality in an ARIMA Framework," American Economic Review, American Economic Association, vol. 83(3), pages 402-15, June.
- James Bullard, 1999. "Testing long-run monetary neutrality propositions: lessons from the recent research," Review, Federal Reserve Bank of St. Louis, issue Nov, pages 57-77.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.