@article{Zohrabyan:137782,
      recid = {137782},
      author = {Zohrabyan, Tatevik and Bessler, David A.},
      title = {On Price Dynamics in International Wheat Markets},
      address = {2006-02},
      number = {417-2016-26328},
      pages = {24},
      year = {2006},
      abstract = {Extending the previous work by Bessler et. al. (2003),  this paper examines dynamic
relationships in the  international wheat markets by employing five different  base
(country) currencies and a basket of currency. The  stable aggregate currency (SAC) is
proposed as the basket  currency to be used in examining wheat price dynamics  as
opposed to individual base currencies or other possible  baskets. Employing directed
acyclic graphs and standard  moving average representations, we compare the results  from
the SAC currency to those from prices converted in  five base currencies. The findings are
dependent upon the  base currency choice; however, in all cases Canada is the  dominant
power in affecting world wheat price, whereas, the  price innovations pass through the
U.S. and Australia to  the rest of the world. Furthermore, Europe and Argentina  are
information “sinks” as they receive but do not transmit  new information. A possible
latent variable associated with  wheat pricing in the European Union appears to  mediate
information flows between Europe and Argentina and  between Europe and Australia.
Given the stability and low  correlation properties of SAC, it is proposed to use  SAC
when studying price dynamics across countries.},
      url = {http://ageconsearch.umn.edu/record/137782},
      doi = {https://doi.org/10.22004/ag.econ.137782},
}