Causality of the U.S. Agricultural Prices and the Money Supply: Further Empirical Evidence

摘要

In an important paper published in the May 1983 issue of this Journal Barnett, Bessler, and Thompson (BBT) empirically examined the direction of causality between the U. S. money supply and nominal agricultural prices. The authors deployed the direct Granger test of causation between money supply and nominal agricultural prices. Causality implications were derived from standard F-statistics. The results based on F - tests were then used to test the null hypothes is that agricultural prices are not affected by changes in the stock of money.