Hostname: page-component-78c5997874-j824f Total loading time: 0 Render date: 2024-11-17T12:07:50.475Z Has data issue: false hasContentIssue false
  • English
  • Français

Exchange Rate Effects on Agricultural Trade

Published online by Cambridge University Press:  28 April 2015

David Orden
David Orden*
Affiliation:
Department of Agricultural and Applied Economics, Virginia Tech, Blacksburg, VA
Get access Rights & Permissions [Opens in a new window]

Abstract

With sustained appreciation of the U.S. dollar over the past 4 years, the exchange rate has again taken on importance for agriculture. This overview paper revisits the analysis of exchange rate impacts, reviewing the relevant conceptual arguments, summarizing the evidence economists and agricultural economists have marshaled from the 1970s and the 1980s and from several more recent papers, presenting some illustrative recent empirical analysis of exchange rate effects, and briefly examining the detrimental consequences that sustained appreciation of the dollar is having on U.S. farm policy.

Keywords

agricultural policyagricultural tradeexchange rateF31Q17Q18
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 34 , Issue 2 , August 2002 , pp. 303 - 312
Copyright
Copyright © Southern Agricultural Economics Association 2002

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bessler, D.A. “Relative Prices and Money: A Vector Autoregression on Brazilian Data.” American Journal of Agricultural Economics 66,1(February 1984):25–30.CrossRefGoogle Scholar
Bradshaw, G., and Orden, D.. “Granger Causality from the Exchange Rate to Agricultural Prices and Export Sales.” Western Journal of Agricultural Economics 15,1(July 1990):100-10.Google Scholar
Carter, C., Gray, R., and Furtan, H.. “Exchange Rate Effects on Inputs and Outputs in Canadian Agriculture.” American Journal of Agricultural Economics 72,2(August 1990):738-43.CrossRefGoogle Scholar
Chambers, R.G. “Agricultural and Financial Market Interdependence in the Short Run.” American Journal of Agricultural Economics 66,1(February 1984):12–24.CrossRefGoogle Scholar
Dorfman, J.H., and Lastrapes, W.D.. “The Dynamic Responses of Crop and Livestock Prices to Money-Supply Shocks: A Bayesian Analysis Using Long-Run Identifying Restrictions.” American Journal of Agricultural Economics 78,3(August 1996):530-41.CrossRefGoogle Scholar
Dornbusch, R. “Expectations and Exchange Rate Dynamics.” Journal of Political Economy 84(1976):1161-74.CrossRefGoogle Scholar
Eichenbaum, M., and Evans, C.L.. “Some Empirical Evidence on the Effects of Shocks to Monetary Policy on Exchange Rates.” Quarterly Journal of Economics 110,4(November 1995):975–1009.CrossRefGoogle Scholar
Fisher, L.A., and Huh, H-S.. “Real Exchange Rates, Trade Balances and Nominal Shocks: Evidence for the G-7.” Journal of International Money and Finance 21,4(August 2002):497–518.CrossRefGoogle Scholar
Friedman, M. “The Case for Flexible Exchange Rates.” Essays in Positive Economics. Chicago: University of Chicago Press, 1953.Google Scholar
Hughes, D.W., and Penson, J.B. Jr. “Effects of Selected Macroeconomic Policies on Agriculture: 1984-1990.” Agricultural Financial Review 45(1985):81–91.Google Scholar
Lai, C., Hu, S., and Wang, V.. “Commodity Price Dynamics and Anticipated Shocks.” American Journal of Agricultural Economics 78,4(November 1996):982-90.CrossRefGoogle Scholar
Lane, P.R. “Money Shocks and the Current Account.” Paper presented at the International Economics Workshop, Stanford University, October 1998.Google Scholar
Orden, D. “Agriculture, Trade and Macroeconomics: The U.S. Case.” Journal of Policy Modeling 8,1(Spring 1986a):27–51.CrossRefGoogle Scholar
Orden, D. “Money and Agriculture: The Dynamics of Money-Financial Market-Agricultural Trade Linkages.” Agricultural Economics Research 38,4(Summer 1986b):14–28.Google Scholar
Orden, D., and Fackler, P.. “Identifying Monetary Impacts on Agricultural Prices in VAR Models.” American Journal of Agricultural Economics 71,2(May 1989):495–502.CrossRefGoogle Scholar
Orden, D., Paarlberg, R., and Roe, T.. Policy Reform in American Agriculture: Analysis and Prognosis. Chicago: University of Chicago Press, 1999.Google Scholar
Prasad, E. “International Trade and the Business Cycle.” Economic Journal 109(1999):588–606.CrossRefGoogle Scholar
Rausser, G.C., Chalfant, J.A., Love, A., and Stamulis, K.G.. “Macroeconomic Linkages, Taxes, and Subsidies in the Agricultural Sector.” American Journal of Agricultural Economics 68,2(May 1986):399–412.CrossRefGoogle Scholar
Roberts, I., and Jotzo, F.. 2002 U.S. Farm Bill. Research Report 01.13. Canberra: Australian Bureau of Agricultural and Resource Economics, 2001.Google Scholar
Saghaian, S., Reed, M., and Marchant, M.. “Monetary Impacts and Overshooting of Agricultural Prices in an Open Economy.” American Journal of Agricultural Economics 84,1(February 2002):90–103.CrossRefGoogle Scholar
Schuh, G.E. “The Exchange Rate and U.S. Agriculture.” American Journal of Agricultural Economics 56,1(February 1974):1–13.CrossRefGoogle Scholar
Schuh, G.E. “The Exchange Rate and U.S. Agriculture: Reply.” American Journal of Agricultural Economics 57,4(November 1975):696–700.CrossRefGoogle Scholar
Sims, C.A. “Comparison of Interwar and Postwar Business Cycles: Monetarism Reconsidered.” American Economic Review 70,2(May 1980):250-57.Google Scholar
Sims, C.A. “Macroeconomics and Methodology.” Journal of Economic Perspectives 10,1(Winter 1996):105-20.CrossRefGoogle Scholar
Warren, G.F. “Which Does Agriculture Need—Readjustment or Legislation?” Journal of Farm Economics 10(1928):1–15.CrossRefGoogle Scholar
Xu, M., and Orden, D.. “Exchange Rate Effects on Canadian/U.S. Agricultural Prices.” Presented at the annual meeting of the American Agricultural Economics Association, Long Beach, California, July 2002.Google Scholar