The Macroeconomic Issues site is designed as a resource to assist the user in increasing their understanding of issues dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. The site provides sources of information, data, and analysis on Macroeconomic Issues specific public policy issues impacting Arkansas’ agricultural and rural sector.
What the World Economic Crisis Means for Global Agricultural Trade
ERS evaluates the potential impacts of the 2008-2009 world crisis on international agricultural trade. The most pronounced feature of the current crisis is the sharp fall in agricultural trade, which is likely to fall between 20 and 30 percent in value between 2008 and 2009. This report provides insight into how the crisis is affecting both the commodity composition and the country composition of agricultural trade.
The Transmission of Exchange Rate Changes to Agricultural Prices
ERS provides empirical evidence that price and exchange rate transmission for agricultural products is low in most developing economies, partly because of trade policies but also because of inadequate infrastructure and other market deficiencies. Movements in countries' exchange rates can substantially change the prices of goods faced by producers and consumers and thereby affect incentives to produce, consume, and trade goods. Exchange rate changes, however, might not be completely transmitted (passed through) to domestic prices.
The 2008/2009 World Economic Crisis: What It Means for U.S. Agriculture
ERS evaluates the causes and consequences for U.S. agriculture of the global economic crisis. Weakening of global demand results in lower U.S. agricultural exports and lower agricultural commodity prices, and puts downward pressure on agricultural real estate values.