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Nonlinear Monetary Dynamics

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Author Info
DeCoster, Gregory P
Mitchell, Douglas W
Abstract

This article uses the correlation-dimension technique, along with the residual and shuffle tests, to look for evidence of nonlinear dynamic structure in various weekly monetary aggregates, their components, the monetary base, and the money multipliers. The results support the Barnett and Chen (1988) and Chen (1988) findings of nonlinearity in Divisia M2, Divisia M3, and simple sum M2. Evidence of nonlinear structure is also found for simple sum M1; currency; demand deposits; all checkable deposits; M3 minus M2; the monetary base; and the multipliers of M1, M2, and M3.

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Publisher Info
Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 9 (1991)
Issue (Month): 4 (October)
Pages: 455-61
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Handle: RePEc:bes:jnlbes:v:9:y:1991:i:4:p:455-61

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  1. Jane Binner & Rakesh Bissoondeeal & Thomas Elger & Alicia Gazely & Andrew Mullineux, 2004. "Vector autoregressive models versus neural networks in forecasting: an application to Euro-inflation and divisia money," Money Macro and Finance (MMF) Research Group Conference 2003 5, Money Macro and Finance Research Group. [Downloadable!]
  2. William A. Barnett & Alfredo Medio & Apostolos Serletis, 1997. "Nonlinear and Complex Dynamics in Economics," Econometrics 9709001, EconWPA. [Downloadable!]
  3. Ramsey, J.B. & Rothman, P., 1992. "A Reassessment of Dimension Calculations Using Some Monetary Data," Working Papers 92-28, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  4. William A. Barnett & Apostolos Serletis, 1998. "Martingales, Nonlinearity, and Chaos," Econometrics 9805003, EconWPA. [Downloadable!]
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  5. Mototsugu Shintani & Oliver Linton, 2000. "Is There Chaos in the World Economy? A Nonparametric Test Using Consistent Standard Errors," Working Papers 0111, Department of Economics, Vanderbilt University, revised Jun 2001. [Downloadable!]
    Other versions:
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This page was last updated on 2009-12-19.


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