The Impact of Monetary Policy Shock on the Price of Storable Goods: A Case Study of Food

Forough Jahantigh (), Mohammad Rahmi Ghasemabadi () and Omolbanin Jalali ()
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Forough Jahantigh : Faculty of Management & Economics
Mohammad Rahmi Ghasemabadi : Faculty of Management & Economics
Omolbanin Jalali : Faculty of Economics Management and Accounting

Journal of Money and Economy, 2018, vol. 13, issue 4, 471-490

Abstract: In many economies, commodity price volatility is one of the sources of signaling to market players. Different experiences of price shocks have led economists to reconsider price shocks. Considering the effects of monetary policy on the inflation rate, the present study investigates the impact of monetary policy shock on the price of storable food commodities. In this regard, data for 2006: 01 to 2016:12 for Iran was investigated. The results show that a one percent increase in money supply and the interest rate on deposits increases food prices in the long-term by 0.18 percent and 0.82 percent, respectively.

Keywords: Monetary Policy Shock; Storable Goods; Food. (search for similar items in EconPapers)
JEL-codes: E52 F31 Q14 Q18 Q28 (search for similar items in EconPapers)
Date: 2018
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