Current Macroeconomic Policies and U.S. Agriculture: Discussion

Abstract

the stage for further discussion and research. Starleaf's paper asserts the U.S. economy has been demand-managed during the postwar period in an effort to achieve high growth and resource utilization rates-given implied price stability constraints. Other industrialized countries have pursued similar goals, as well. While demand management has not been abandoned, it certainly has been reevaluated by most industrialized countries. As a result, these countries have exhibited much greater willingness to accept slow or negative real economic growth rates in order to address stubborn inflation problems. In his paper, Starleaf utilizes a number of regression equations to demonstrate the linkages between the farm sector and the general economy. While many of his conclusions have been reported previously in agricultural economics literature, some new and useful perspectives are discussed. For example, agricultural economists have long been concerned with supply management. But if strong economic growth in the general economy has as positive an impact on farm prices as he indicates, perhaps farmers should become more interested in demand management. Farm policy makers could become more supportive of public transfer payment programs such as food stamps, school lunches, and the like. Parenthetically, supply considerations are more important in determining farm price movements than Starleaf indicates. The statis-