Study of Monetary Policies Effect on Food Price in Iran

مجله اقتصاد و توسعه کشاورزی

Article 6, Volume 24, Issue 2, July 2010   

Document Type: Research Article

DOI: 10.22067/jead2.v1389i2.3933

Authors

M. Aazamzadeh Shooroki^* ; S. Khalilian

Tarbiat Modares

Abstract

Providing of food products for increasing population, enhancing food security, increasing of production and foreign incomes are among the major program purposes of each country and monetary policies are one of the methods that immediately affected on food price and on major agriculture variables. Time series analysis was used for studying the impacts of monetary policies effect on food price index (FPI) in 1373-2006 in this investigation. For this purpose, money supply, exchange rate and interest rate variables were used for representation of monetary policy variables. ARDL method was used for estimation of this model. Results showed that was a long-run and positive linkage between monetary policy variables and food price index (FPI) that is expectable theoretically. Also government by using of monetary policies can control of food price index (FPI) and supporting of food security. Results obtained from error correction model showed that great speed was toward long-run equilibrium.

JEL Classification: e5, e52, q18

Keywords

Feed security; Food price index; Monetary policy; ARDL method; Ecorrection model