Impact Of Inflation On Agricultural Production

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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.