The Consequences of a Strong Depreciation of the U.S. Dollar on Agricultural Markets

Pierre Charlebois and Nathalie Hamann

No 94750, Economic and Market Information from Agriculture and Agri-Food Canada

Abstract: World prices for basic food commodities increased significantly in 2007-2008, triggering a worldwide food crisis. Among all the factors that contributed to the rise in agricultural prices in 2008, the depreciation of the U.S. dollar relative to other major currencies cannot be overlooked. The currencies of the major players in agricultural markets have shown strong appreciation from 2002 to 2008. The purpose of this study is to determine the effect of a strong depreciation of the U.S. dollar on the world prices of food commodities. Given the current U.S. budget situation, future depreciation is possible. This would again have consequences on world commodity prices and on the competitiveness of different countries. Thus, the final section assesses what would happen if a comparable depreciation in the U.S. dollar occurred in the near future.

Keywords: Demand and Price Analysis; International Relations/Trade; Political Economy (search for similar items in EconPapers)
Pages: 12
Date: 2010-08
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaacem:94750

DOI: 10.22004/ag.econ.94750

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