THE IMPACTS OF U.S. MONETARY POLICIES ON THE FARM SECTOR

Much of the literature on the macroeconomics of agriculture investigated only the exchange rate linkage between the general economy and agriculture. This study examines the effects of U.S. monetary policies on agriculture in a general equilibrium framework through exchange rates, interest rates, inflation, and income linkages. Empirical results indicate that the U.S. monetary policy has significant impacts on farm incomes, prices, exports, demand, and supply.