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Effects of foreign currency component in monetary aggregates on money neutrality

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Author Info
Ran, Jimmy
Voon, Jan P.
Li, Guangzhong
Abstract

We test the money neutrality from a new angle. The in-sample investigation provides evidence that M1 and M2 with or without foreign currency component affect nominal GDP. The out-of-sample approach shows money tends to affect nominal more than real GDP.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4PNFV4F-9/1/40f3918997eb1aadf8b8d8b3b578a720
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 99 (2008)
Issue (Month): 3 (June)
Pages: 435-438
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Handle: RePEc:eee:ecolet:v:99:y:2008:i:3:p:435-438

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