Impact Of Inflation On Agricultural Production

This study is empirically investigate the impact of inflation on crop production specifically on coffee production in Tanzania from 1980-2010. The study uses time series data, employing Co integration and Error Correction Mechanism (ECM). The empirical results show that there is insignificant impact of inflation on crop production in Tanzania; this indicates that inflation is either not good indicator to measure inflation in Tanzania.The study concludes that though insignificant impact of inflation on crop production, the government should assure long-term economic stability in the economy for effective production in the economy.