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Expectations and the quantity equation - evidence from Eastern European countries

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  • Ralf Fendel
  • Jan-Christoph Ruelke

Abstract

This article analyses the usefulness of the quantity equation from the financial market's view. We use more than 10 000 forecasts of financial analysts concerning projections of the growth rate of money supply, prices and real output for six Central and Eastern European countries to test whether they are internally consistent with the quantity equation. In particular, we report that forecasts are consistent with the quantity equation in high-inflation countries and high-inflation regimes.

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  • Ralf Fendel & Jan-Christoph Ruelke, 2014. "Expectations and the quantity equation - evidence from Eastern European countries," Applied Economics, Taylor & Francis Journals, vol. 46(3), pages 329-335, January.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:329-335
    DOI: 10.1080/00036846.2013.839862
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    References listed on IDEAS

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    Cited by:

    1. Cuneyt Dumrul & Yasemin Dumrul, 2015. "Price-Money Relationship after Infl ation Targeting: Co-integration Test with Structural Breaks for Turkey and Brazil," International Journal of Economics and Financial Issues, Econjournals, vol. 5(3), pages 701-708.

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