The Impact of Cost Pressure on Money Supply Endogenity in Iran

Exogeneity and controllabillty of money is a basic assumption in
Neo-Keynesian and monetarist analysis, as well as most contemprory
economic macro-models.
equilibrium path Cattani & Cavallo & Khan model (J990)1 is employed,
and Pree & Stienhe,2 model (J989) has been used for calculation of the
real exchange rate unstability index. The results, indicate negative effects of
real exchange rate deviation from its long-run equilibrium path, and real
exchang rate fluctuations on the supply of agricultural products. it is also
indicated that the relative price of agricultural exportable products, and
sudden changes in the supply of agricultural products, as well as, technical
improvements all are dignificaut factors in the expansion of export market
for these products