The Influence of Macroeconomic Variables on the Hungarian Agriculture

This 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.


Issue Date:
2005
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/19232
Total Pages:
19
JEL Codes:
C32; E51; P22; Q11
Series Statement:
Selected Paper 136565




 Record created 2017-04-01, last modified 2017-12-08

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