Work

The Overshooting Hypothesis of Agricultural Prices: The Role of Asset Substitutability

Year: 2005

Type: article

Abstract: By allowing for various degrees of asset substitutability between bonds and agricultural products, this paper reexamines the robustness of the overshooting hypothesis of agricultural product prices. It is found, in both a closed economy and an open economy, that the crucial factor determining whether agricultural prices overshoot or undershoot their long-run response following an expansion in the money stock depends upon the extent of asset substitutability between bonds and agricultural goods.

Source: RePEc: Research Papers in Economics

DOI: 10.22004/ag.econ.30784

Authors: Lai, Ching-Chong, Hu, Shih-Wen, Fan, Chih-Ping

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Zero hunger

Open Access status: green

OpenAlex ID: W3199218940

FWCI:

Cites: 34

Cited by: 9

Related to: 10