Longer-term effects of monetary growth on real and nominal variables, major industrial countries, 1880-2001
AbstractAbstract: We study how fluctuations in money growth correlate with fluctuations in real and nominal output growth and inflation. We pick cycles from each time series that last 2 to 8 (business cycles) and 8 to 40 (longer-term cycles) years, using band-pass filters. We employ a data set from 1880 to 2001 for eleven countries, without gaps. Fluctuations in money growth do not play a systematic and important role at the business cycle frequency. However, money growth leads or contemporaneously affects nominal output growth and inflation in the longer run. This result holds despite differences in policies and institutions across countries. JEL Classification: E3
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Date of creation: Aug 2004
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Find related papers by JEL classification:
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-05 (All new papers)
- NEP-CBA-2005-11-01 (Central Banking)
- NEP-HIS-2005-10-27 (Business, Economic & Financial History)
- NEP-MAC-2005-10-06 (Macroeconomics)
- NEP-MON-2005-10-07 (Monetary Economics)
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