Authors
1 PhD Candiate in Economic, Zabol University
2 Assistant Professor, University of Zabol
Abstract
A macroeconometric simulation study was undertaken to evaluate the impact of commodity price stabilisation (CPS) schemes for the export of Agricultural crop in Iran. The findings suggest that there is a negligible level of favourable macroeconomic impacts of CPS. Contrary to the expectation, CPS adversely affects the stability of monetary and external sectors (BOP). That is, the CPS policy would faile to stabilise the macroeconomy, therefore, it is not appropriate from the macroeconomic point of view. Technical progrees, futures market, and rural credit are the possible alternative policy options to manage the price risk.
Keywords
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