This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Money and uncertainty in the Philippines: A Friedmanite Perspective

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Assad L. Baunto (University of Philippines - University of Philippines)
Christian Bordes () (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
Samuel Maveyraud-Tricoire (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - CNRS : UMR5113 - Université Montesquieu - Bordeaux IV)
Philippe Rous (LAPE - Laboratoire d'économie appliquée - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique)
Abstract

This paper aims to provide a unified theoretical framework of the two hypotheses proposed by Friedman: (i). increased variability of money supply results in the decline of income velocity of money and (ii) high inflation leads high variability of inflation which reduces potential output growth. This paper also provides empirical investigation to validate Friedman's hypotheses using Philippine data. The Philippine economy experienced persistently higher and more variable inflation rate and weaker macroeconomic performance relative to other Asian countries, and these characteristics provide ample opportunity to evaluate Friedman's proposals at work. Utilizing original methodologies (e.g. band‐pass filter), our findings validate both proposals.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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://hal.archives-ouvertes.fr/docs/00/30/86/63/PDF/Baunto-Bordes-Maveyraud-Rous2007.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00308663_v1.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Sep 2007
Date of revision:
Handle: RePEc:hal:cesptp:hal-00308663_v1

Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00308663/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/

For technical questions regarding this item, or to correct its listing, contact: (CCSD).

Related research
Keywords: Friedman; GARCH; T‐GARCH; Bai‐and‐Perron technique; band pass filter;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Gary Shelley & Frederick Wallace, 2005. "The relation between U.S. money growth and inflation: evidence from a band-pass filter," Economics Bulletin, Economics Bulletin, vol. 5(8), pages 1-13. [Downloadable!]
  2. Payne, James E., 1992. "Velocity and money growth variability: Some further evidence," International Review of Economics & Finance, Elsevier, vol. 1(2), pages 189-194. [Downloadable!] (restricted)
  3. Thornton, John, 1995. "Friedman's Money Supply Volatility Hypothesis: Some International Evidence: Note," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(1), pages 288-92, February. [Downloadable!] (restricted)
  4. Friedman, Milton, 1983. "Monetary Variability: United States and Japan," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 15(3), pages 339-43, August. [Downloadable!] (restricted)
  5. Yap, Josef T., 2001. "Dollarization: Concepts and Implications for Monetary and Exchange Rate Policy in the Philippines," Discussion Papers DP 2001-03, Philippine Institute for Development Studies. [Downloadable!]
  6. Zijun Wang, 2006. "The joint determination of the number and the type of structural changes," Economics Letters, Elsevier, vol. 93(2), pages 222-227, November. [Downloadable!] (restricted)
  7. Jushan Bai & Pierre Perron, 2003. "Critical values for multiple structural change tests," Econometrics Journal, Royal Economic Society, vol. 6(1), pages 72-78, 06. [Downloadable!] (restricted)
  8. Yap, Josef T., 2001. "Dollarization: Concepts and Implications for Monetary and Exchange Rate Policy in the Philippines," Philippine Journal of Development, Philippine Institute for Development Studies, vol. 0(1), pages 87-106. [Downloadable!]
  9. John Thornton & Philip Molyneux, 1995. "Velocity And The Volatility Of Unanticipated And Anticipated Money Supply In The United Kingdom," International Economic Journal, Korean International Economic Association, vol. 9(3), pages 61-66, October. [Downloadable!] (restricted)
  10. McCornac, Dennis C, 1994. "Velocity and Money Growth Variability: Evidence from Japan," Applied Economics Letters, Taylor and Francis Journals, vol. 1(9), pages 145-47, September. [Downloadable!] (restricted)
  11. Lamberte, Mario B., 2002. "Central Banking in the Philippines: Then, Now and the Future," Discussion Papers DP 2002-10, Philippine Institute for Development Studies. [Downloadable!]
  12. Chowdhury, Abdur R & Wheeler, Mark, 1999. "The Velocity of US M2 in the 1990s: Some Further Evidence," Applied Economics, Taylor and Francis Journals, vol. 31(9), pages 1137-44, September. [Downloadable!] (restricted)
  13. Mehra, Yash P, 1989. "Velocity and the Variability of Money Growth: Evidence from Granger-Causality Tests: Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 21(2), pages 262-66, May. [Downloadable!] (restricted)
  14. Chee-Keong Choong & Siong-Hook Law & Wai-Ching Poon & Zulkornain Yusop, 2004. "Financial Liberalization, Monetary Growth Variability and the Changing Characteristics of Money Velocity in Malaysia," Icfai University Journal of Monetary Economics, Icfai Press, vol. 0(3), pages 7 - 23, August.
  15. John Thornton, 2006. "High And Variable Inflation: Further Evidence On The Friedman Hypothesis," South African Journal of Economics, Economic Society of South Africa, vol. 74(2), pages 167-171, 06. [Downloadable!] (restricted)
  16. Lynch, Gerald J & Ewing, Bradley T, 1995. "Velocity and the Variability of Anticipated and Unanticipated Money Growth: A Cross-Country Comparison," Applied Economics Letters, Taylor and Francis Journals, vol. 2(11), pages 444-48, November. [Downloadable!] (restricted)
  17. 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, January. [Downloadable!] (restricted)
  18. Brocato, Joe & Smith, Kenneth L, 1989. "Velocity and the Variability of Money Growth: Evidence from Granger-Causality Tests: Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 21(2), pages 258-61, May. [Downloadable!] (restricted)
  19. Serletis, Apostolos & Shahmoradi, Akbar, 2006. "Velocity And The Variability Of Money Growth: Evidence From A Varma, Garch-M Model," Macroeconomic Dynamics, Cambridge University Press, vol. 10(05), pages 652-666, November. [Downloadable!]
  20. Reyes, Celia M & Yap, Josef T., 1993. "Money and Prices in the Philippines, 1981-1992: A Cointegration Analysis," Philippine Journal of Development, Philippine Institute for Development Studies, vol. 0(1), pages 57-78. [Downloadable!]
  21. Ramon Moreno & Reuven Glick, 2001. "Is money still useful for policy in East Asia?," Pacific Basin Working Paper Series 01-12, Federal Reserve Bank of San Francisco. [Downloadable!]
  22. Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, vol. 31(3), pages 307-327, April. [Downloadable!] (restricted)
  23. Augustine C. Arize, 1993. "Money Growth Volatility And Income Velocity In The United Kingdom," International Economic Journal, Korean International Economic Association, vol. 7(3), pages 43-52, October. [Downloadable!] (restricted)
  24. Chowdhury, Abdur R., 1988. "Velocity and the variability of money growth : Some international evidence," Economics Letters, Elsevier, vol. 27(4), pages 355-360. [Downloadable!] (restricted)
  25. Lawrence J. Christiano & Terry J. Fitzgerald, 2003. "The Band Pass Filter," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 435-465, 05. [Downloadable!] (restricted)
    Other versions:
  26. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July. [Downloadable!] (restricted)
  27. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, vol. 66(1), pages 47-78, January.
    Other versions:
  28. Diebold & Lopez, . "Modeling Volatility Dynamics," Home Pages _062, University of Pennsylvania. [Downloadable!]
    Other versions:
  29. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178. [Downloadable!] (restricted)
    Other versions:
  30. Thornton, John, 1991. "Velocity and the Variability of Monetary Growth in the United Kingdom," Applied Economics, Taylor and Francis Journals, vol. 23(4B), pages 811-13, Part B, A.
Full references

Statistics
Access and download statistics

Did you know? Over 80% of the top 1000 economists are registered on RePEc.

This page was last updated on 2009-12-8.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.