Commodity Price Dynamics and Anticipated Shocks

In this paper we address the robustness of overshooting hypothesis in agricultural prices. We find that agricultural prices may undershoot their long-run level if the economy experiences an anticipated monetary shock rather than an unanticipated monetary shock. We also find that agricultural prices definitely display undershooting if the price of manufactures adjusts instantaneously rather than sluggishly. Copyright 1996, Oxford University Press.

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Year of publication:	1996
Authors:	Hu, Shih-wen ; Wang, Vey
Published in:	American Journal of Agricultural Economics. - Agricultural and Applied Economics Association - AAEA. - Vol. 78.1996, 4, p. 982-990
Publisher:	Agricultural and Applied Economics Association - AAEA

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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