MONETARY IMPACTS ON PRICES IN THE SHORT AND LONG RUN: FURTHER RESULTS FOR THE UNITED STATES

By: Choe, Young Chan; Koo, Won W.
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Choe, Young Chan; Koo, Won W., MONETARY IMPACTS ON PRICES IN THE SHORT AND LONG RUN: FURTHER RESULTS FOR THE UNITED STATES, Journal of Agricultural and Resource Economics, Volume 18, Issue 2, December 1993, Pages 211-224

This study examines the long-run neutrality of money and the short-run dynamics of farm and nonfarm prices to the monetary shock, using Johansen's approach. Results find a long-run equality of prices, but not neutrality. In the short-run, farm prices adjust faster than nonfarm prices to a monetary shock.