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Determinants of Income Velocity in the United Kingdom: Multivariate Granger Causality

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  • Augustine C. Arize

Abstract

Using cointegration and multivariate causality approach, this paper examines the determinants of income velocity in the United Kingdom over the period, 1973Q1–1990Q2. The results suggest that changes in interest rate, interest rate volatility, real exchange rate and money growth volatility provide information that helps predict future movements in income velocity.

Suggested Citation

  • Augustine C. Arize, 1993. "Determinants of Income Velocity in the United Kingdom: Multivariate Granger Causality," The American Economist, Sage Publications, vol. 37(2), pages 40-45, October.
    • Handle: RePEc:sae:amerec:v:37:y:1993:i:2:p:40-45
    DOI: 10.1177/056943459303700207
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