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Currency Substitution: A Test Of Its Importance For The United States And Implications For Agricultural Trade

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  • Maley, Stephen

Abstract

Agricultural economists are concerned with effects of domestic and foreign monetary events on U.S. agriculture. Much attention has recently focused on the theory of currency substitution. This report explains the theory and evaluates evidence for the theory. Results indicate that evidence for currency substitution is weak. Although the benefit of specifying currency substitution in the context of macroeconomic/agricultural trade models is not likely to be high, additional research for the period after 1981 is needed.

Suggested Citation

  • Maley, Stephen, 1986. "Currency Substitution: A Test Of Its Importance For The United States And Implications For Agricultural Trade," Staff Reports 277857, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:277857
    DOI: 10.22004/ag.econ.277857
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    References listed on IDEAS

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    3. Longmire, James L. & Morey, Art, 1983. "Strong Dollar Dampens Demand for U.S. Farm Exports," Foreign Agricultural Economic Report (FAER) 147219, United States Department of Agriculture, Economic Research Service.
    4. Radcliffe, Christopher & Warga, Arthur D & Willett, Thomas D, 1984. "Currency Substitution and Instability in the World Dollar Standard: Comment," American Economic Review, American Economic Association, vol. 74(5), pages 1129-1131, December.
    5. Pagano, Marcello & Hartley, Michael J., 1981. "On fitting distributed lag models subject to polynomial restrictions," Journal of Econometrics, Elsevier, vol. 16(2), pages 171-198, June.
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    7. William A. Barnett & Edward K. Offenbacher & Paul A. Spindt, 2000. "The New Divisia Monetary Aggregates," Contributions to Economic Analysis, in: The Theory of Monetary Aggregation, pages 360-388, Emerald Group Publishing Limited.
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