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Macroeconomics Commons

Open Access. Powered by Scholars. Published by Universities.®

1986

Agricultural and Resource Economics

Articles 1 - 4 of 4

Full-Text Articles in Macroeconomics

Nonneutral Effects Of Money Supply On Farm And Industrial Product Prices, S. Devadoss, William H. Meyers Nov 1986

Nonneutral Effects Of Money Supply On Farm And Industrial Product Prices, S. Devadoss, William H. Meyers

CARD Working Papers

Changes in relative prices or terms of trade, i.e., the ratio of farm output to farm input or nonfarm output prices, have significant implications for the farm economy. If the prices farmers receive for their outputs increase (decrease) relative to the prices they pay for their inputs, the economic well being of farmers is enhanced (diminished). The terms of trade are likely to change if general price inflation changes. Thus, movements in general price inflation can affect farm income significantly.

Recent macroeconomics literature postulates that to the extent that general inflation can in and of itself generate relative price ...


Macroeconomic Impacts On The U.S. Agricultural Sector: A Quantitative Analysis For 1980-84, William H. Meyers, Michael D. Helmar, S. Devadoss, Robert E. Young, David Blandford Nov 1986

Macroeconomic Impacts On The U.S. Agricultural Sector: A Quantitative Analysis For 1980-84, William H. Meyers, Michael D. Helmar, S. Devadoss, Robert E. Young, David Blandford

CARD Working Papers

Agricultural trade problems have been receiving increased attention in the United States for the last few years. The reason is obvious. After a decade during which the value of agricultural exports grew from $8 billion annually to a peak of nearly $44 billion in 1981, both quantities and values of exports have fallen substantially. Recent U.S. Department of Agriculture (*SDA) estimates project $32 billion in farm exports in 1985. In the long history of U.S. agriculture, exports have often been a major force in agricultural prosperity and distress. It is a natural tendency, therefore, to look at export ...


Exchange Rates, Trade Deficits, And U.S. Prices, S. Devadoss, William H. Meyers, Stanley R. Johnson Jul 1986

Exchange Rates, Trade Deficits, And U.S. Prices, S. Devadoss, William H. Meyers, Stanley R. Johnson

CARD Working Papers

Granger Causality tests are run to examine the causal relationships between the trade deficit, another macroeconomic variable, and U.S. prices. The results show that strong causal relationships run from the trade deficit to agricultural prices but not to nonagricultural prices. Results of causality tests also indicate that the huge trade deficit is caused by a strong U.S. dollar.


Monetary Policies, Interest Rates, And U.S. Agriculture: An Economic Simulation Analysis, S. Devadoss, William H. Meyers Jun 1986

Monetary Policies, Interest Rates, And U.S. Agriculture: An Economic Simulation Analysis, S. Devadoss, William H. Meyers

CARD Working Papers

In the agricultural economics literature, relatively little attention has been given to the effects of interest rates on the U.S. farm sector. According to macroeconomic theory, monetary policy influences the interest rate. Changes in the interest rate will have an effect on a farmer's decision to borrow credit and thus on farm production and inventory decisions. Economists believe that the recent farm financial crisis was caused by higher interest rates, which were the result of a tight monetary policy pursued by the Federal Reserve authorities. This study investigates the effect of changes in U.S. monetary policies on ...