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Monetary policy and agriculture: Interrelationships discussed in the literature during the past two decades
Author(s) -
Lambert Charles D.
Publication year - 1986
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(198622)2:2<159::aid-agr2720020203>3.0.co;2-5
Subject(s) - agriculture , economics , agribusiness , agricultural policy , exchange rate , monetary policy , fiscal policy , production (economics) , agricultural economics , agricultural productivity , capital (architecture) , interest rate , monetary economics , macroeconomics , international economics , economic policy , history , ecology , archaeology , biology
This survey of the literature reviews interrelationships between changing US monetary and fiscal policies and resulting impacts on the agricultural sector with implications for agribusiness. Policy instruments discussed include movement to floating exchange rates (1971 and 1973), controlled bank reserves (1979), and federal spending deficits. Impacts on agriculture resulting from these policies encompass changed export demand for agricultural products, increased instability of agricultural income, and higher interest rate costs in a capital‐intensive industry. Also reviewed are linkages between agriculture and the rest of the economy and credit linkages to agricultural production.