Effects of Exchange Rate Changes on U.S. Agriculture: A Dynamic Analysis
Generate an AI Snapshot to get a quick, structured summary of this paper.
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
Abstract
Abstract An econometric model of the wheat, corn, and soybean markets is used to examine the dynamic effects of exchange rate fluctuation on U.S. commodity markets. Exports and agricultural prices are found to be sensitive to movements in the exchange rate, while domestic factors, such as disappearance and inventories, are less sensitive but still responsive. Dramatic short‐run adjustments in prices and exports are followed by less dramatic but significant longer‐run adjustments. Thus, the hypothesis of elastic response to the exchange rate seems particularly relevant for the short run.