Advanced Search
MyIDEAS: Login to save this article or follow this journal

Money, prices and causality: monetarist versus structuralist explanations using pooled country evidence

Contents:

Author Info

  • Victor Pinga
  • Gerald Nelson

Abstract

The direction of causality between changes in money supply and aggregate prices has long been a matter of controversy between structuralists and monetarists. This paper addresses deficiencies in this literature in three ways. First, a large sample of countries with alternate measures of money and price variables is used to evaluate the evidence on money, inflation and causality. Second, combined data are tested for causality, with the combinations based on variables suggested by the literature - level of per capita income, magnitude of inflation, degree of financial market development, and independence of the central bank. Finally, because the choice of lag length is often arbitrary, results are generated with varying lags and consistency across different lag periods looked for. Two presentation methods are developed - categorical and graphical. Evidence of structural inflation, was found only in Chile and Sri Lanka. Evidence of money supply exogeneity on the other hand was found to be strongest in Kuwait, Paraguay and the USA. Most countries exhibited mixed evidence of money supply endogeneity, with bidirectional causation between money supply and aggregate prices a common result.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122078
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 33 (2001)
Issue (Month): 10 ()
Pages: 1271-1281

as in new window
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1271-1281

Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/RAEC20

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. Tang, Chor Foon, 2008. "Is inflation always a monetary phenomenon in Malaysia?," MPRA Paper 19778, University Library of Munich, Germany.
  2. Tang, Tuck Cheong, 2004. "Demand for broad money and expenditure components in Japan: an empirical study," Japan and the World Economy, Elsevier, vol. 16(4), pages 487-502, December.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1271-1281. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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