An Examination of the Relationship between Food Prices and Government Monetary Policies in Iran
AbstractThis study examines the relationship between food prices and monetary policy variables, using a Vector Error Correction Model (VECM) approach applied to annual data from 1976 to 2006. Results indicate that food prices in Iran have a long-run and short-run equilibrium granger causality relationship with money supply. More specifically, monetary policy reforms are shown to have a significant impact on food prices and domestic agricultural production. These policies influence consumption patterns and have serious implications for poverty reduction, food security issues, and agricultural growth in Iran.
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Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46078.
Date of creation: Feb 2009
Date of revision:
VEC model; food Prices; monetary policy; Iran; Agricultural and Food Policy;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-01-10 (Agricultural Economics)
- NEP-ALL-2009-01-10 (All new papers)
- NEP-ARA-2009-01-10 (MENA - Middle East & North Africa)
- NEP-CWA-2009-01-10 (Central & Western Asia)
- NEP-MAC-2009-01-10 (Macroeconomics)
- NEP-MON-2009-01-10 (Monetary Economics)
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