Efforts to stabilize employment and output in the agricultural sector of Yugoslavia
monetization contributed to inflationary pressures. Granger causality tests suggest
in the rate of growth in the supply of money to subsidize state-owned agribusinesses
were insufficient to maintain purchases of wheat and corn, but did cause purchases
of cattle and swine. This result may be explained by producers having more flexibility
grain marketing (i.e., storage options and private buyers) and the perishability
to livestock marketing. The policy to maintain employment through monetization is
to have been ineffective.