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THE ECONOMIC IMPLICATIONS OF RISING FOOD PRICES: FRIEDMAN AND THE PRICE OF STEAKS
Author(s) -
Silver Mick
Publication year - 1986
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1986.tb01605.x
Subject(s) - economics , inflation (cosmology) , earnings , work (physics) , incomes policy , price level , macroeconomics , monetary economics , mechanical engineering , physics , accounting , theoretical physics , engineering
The rationale for anti‐inflationary policies (at least in the UK) arises from a theory that higher rates of inflation lead to a greater variability in the dispersion of prices and market distortions. This is because economic agents do not fully anticipate what future rates of inflation will be. Little or no empirical work has been directed to the agricultual sector for this model. The economic implications of the prices of some varieties of beef steaks are considered by testing the model for UK data over the period 1968 to 1984. The effects of real earnings and the Common Agricultural Policy are also considered.