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Devaluation, Foreign Trade Controls, and Domestic Wheat Prices
Author(s) -
Johnson Paul R.,
Grennes Thomas,
Thursby Marie
Publication year - 1977
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239389
Subject(s) - devaluation , liberian dollar , economics , monetary economics , us dollar , international economics , agricultural economics , currency , finance
The 1970s have seen sharp fluctuations in grain prices. Several plausible explanations for the unusual severity of these ups and downs have been advanced, including devaluation of the dollar for the upswing in 1972–74. U.S. wheat prices for the year of highest prices, 1973–74,are examined. A trade model that distinguishes wheat by country of origin is used to analyze various events in that year. It is concluded that insulating trade policies by wheat exporters and importers had the largest impact on U.S. wheat prices.