IDEAS home Printed from https://ideas.repec.org/a/phs/prejrn/v30y1993i1p91-101.html
   My bibliography  Save this article

Are Money, Interest Rates, Output and the Exchange Rate Cointegrated? Implications for Monetary Targeting

Author

Listed:
  • Maria Socorro Gochoco

    (Associate Professor, School of Economics, University of the Philippines Diliman)

Abstract

This study examines the relationship between various monetary aggregates and real income, the 91-day Treasury bill rate, and the nominal exchange rate using the Engle and Granger cointegration method. The idea is that the choice for a monetary target should be controllable by the Central Bank and must have a stable and predictable relationship with variables of interest to policymakers. The results show that only M1 is cointegrated with real income, the 91-day Treasury bill rate, and the nominal exchange rate taken together. Overall, the results imply that M1 is the best choice for a target variable.

Suggested Citation

  • Maria Socorro Gochoco, 1993. "Are Money, Interest Rates, Output and the Exchange Rate Cointegrated? Implications for Monetary Targeting," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 30(1), pages 91-101, June.
    • Handle: RePEc:phs:prejrn:v:30:y:1993:i:1:p:91-101
    as

    Download full text from publisher

    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/138/448
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maria Socorro Gochoco-Bautista, 2006. "An Assessment of the Usefulness of Money for Policy in the Philippines," Asian Economic Papers, MIT Press, vol. 5(1), pages 142-176, Winter.
    2. Akhand Akhtar Hossain, 2015. "The Evolution of Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 14611.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phs:prejrn:v:30:y:1993:i:1:p:91-101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RT Campos (email available below). General contact details of provider: https://edirc.repec.org/data/seupdph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.