Anticipated Money, Unanticipated Money and Output Variations in Singapore
AbstractThis paper examines the effectiveness of anticipated and unanticipated money in the variations of output in Singapore over the periods 1971-72 to 2007-08. The study has found that money supply and output in Singapore are cointegrated. No cointegration is found between output and anticipated money. Short-run dynamics of the cointegrated variables testifies that money supply of the immediate past period leads to rise in output. The study also examines the invariance proposition of rational expectations and found the evidence that the unanticipated part of money supply has significant role in the variations of output growth. Therefore monetary surprises may be successful in promoting output growth.
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Bibliographic InfoArticle provided by The Indian Econometric Society in its journal Journal of Quantitative Economics.
Volume (Year): 9 (2011)
Issue (Month): 1 ()
Postal: Managing Editor, Journal of Quantitative Economics, Indira Gandhi Institute of Development Research (IGIDR), Gen. A.K. Vaidya Marg, Goregaon (E), Mumbai 400 065 , INDIA
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