Monetary impacts and overshooting of agricultural prices in a transition economy

摘要

This research focused on the time adjustment paths of the exchange rate and prices in response toudunanticipated monetary shocks. Johansen’s cointegration test along with a vector error correctionudmodel was employed, to investigate whether agricultural prices overshoot in a transition economy. Theudempirical results indicate that agricultural prices adjust faster than industrial prices to innovations inudthe money supply, affecting relative prices in the short run, but strict long-run money neutrality doesudnot hold.