Monetary Impacts and Overshooting of Agricultural Prices in a Transition Economy

Zoltán Bakucs () and Imre Fertő

No 24711, 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark from European Association of Agricultural Economists

Abstract: The paper focus on the time adjustment paths of the exchange rate and prices in response to unanticipated monetary shocks following model developed by Saghaian et al. (2002). We employ Johansen's cointegration test along with a vector error correction model to investigate whether agricultural prices overshoot in a transition economy. The empirical results indicate that agricultural prices adjust faster than industrial prices to innovations in the money supply, affecting relative prices in the short run, but strict long-run money neutrality does not hold.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 13
Date: 2005
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae05:24711

DOI: 10.22004/ag.econ.24711

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