Currency Substitution: A Test of Its Importance for the United States and Implications for Agricultural Trade

摘要

Agricultural economists are concerned with effects of domestic and foreign monetary events on U.S. agriculture. Much attention has recently focused on the theory of currency substitution. The report explains the theory and evaluates evidence for the theory. Results indicate that evidence for currency substitution is weak. Although the benefit of specifying currency substitution in the context of macroeconomic/agricultural trade models is not likely to be high, additional research for the period after 1981 is needed.