This paper measures the impact of US monetary policy on prices and trade in the workd coarse grains market. A long-run, nonlinear, nonspatial price equilibrium world model of the coarse grains market was constructed that endogenizes the US exchange rate while implicity accounting for the pricing policy differences across nations. The results of the analysis show that the effects of an increase in the US money supply are minor in large part because of the inelastic world import demand, elastic US export supply, and inelastic export supploes of other regions. Furthermore, the US competitive position improves in the world market, while its prices change less than those of all other regions in the model.


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