The Effect of Monetary and Financial Policies on Iran's Food Security
Journal Title: Journal of Agricultural Economics & Development - Year 2024, Vol 37, Issue 4
Abstract
Abstract Using appropriate policies to overcome food insecurity is one of the pillars of economic prosperity of countries. Economic decisions that change macroeconomic parameters can directly or indirectly affect food production and prices and affect food security. Therefore, achieving a clear understanding of how macroeconomic policies affect different dimensions of food security in the country can lead to providing solutions to improve the food security index. In this study, a framework of simultaneous equations is presented in order to investigate the relationship between monetary and financial policies with food production and prices in the country. In this regard, using the method of generalized moments, behavioral equations were estimated separately using the data of 1978-2018. The model was then implemented as a system of equations using the Gauss Seidel method. Different scenarios were simulated in this model to investigate the effects of changes in interest rates, money volume, and general government investment on various aspects of food security. The results indicated that government investment in the agriculture sector and public investment expenditures have a positive impact on food production through capital stock. Additionally, changes in interest rates have minimal effects on food production but significant negative effects on food prices. Overall, monetary policy decisions result in increased food prices alongside decreased food production due to the demand for money and private investment. Therefore, the implementation of these policies should be done more carefully in order to encourage farmers to increase production and therefore ensure food security for consumers.
Authors and Affiliations
Toktam Mohtashami,Mohaddeseh Tavakoli,
Keywords
Related Articles
- EP ID EP733779
- DOI https://doi.org/10.22067/jead.2023.72742.1084
- Views 52
- Downloads 0
Climate Change and Agricultural Trade in Iran: A Dynamic Input-Output Analysis
In recent decades, the significance of the issue of climate change has escalated due to its intensified impacts, potentially diminishing or halting economic growth, particularly in developing countries and vulnerable sec...
Investigating the Factors Influencing the Resilience Capacity of Rural Households Affected by Drought: A Case Study of the Villages of Zehak City
Introduction Considering being located in arid and semi-arid regions of the world, Iran is influenced by the most severe impacts of drought. Drought is considered a major threat to the livelihood of rural households. Du...
Measuring Market Behavior in the Dairy Products Industry Using the Profit-Oriented Function
Introduction The market and the conditions governing it, especially the food industry, are always important issues for policymakers, decision makers and planners in the public and private sectors. Because market conditi...
Effect of Customer Relationship Management on Company Performance According to the Moderating Role of Innovation Capability: Evidence from Button Mushroom Production and Packaging Company
IntroductionAgriculture, as one of the most important economic sectors in Iran, has many capabilities and capacities for creating many jobs with minimal investment (Sifelahi, 2021). One of the active fields in agricultur...
The Effect of the Marketing Mix and Specialized Knowledge on the Export Performance of SMEs Exporting Dry Fruits
Export is a crucial driver of economic growth in various countries and significantly contributes to a country's entry into global markets and enhances economic success. In developing countries such as Iran, economic and...