Output Fluctuations and Monetary Shocks: Evidence from Colombia
AbstractUsing annual data for Colombia over the last 30 years, we test opposing theories that explain macroeconomic fluctuations: the neoclassical synthesis, which posits that in the presence of temporary price rigidity an unanticipated monetary expansion produces output gains that erode over time with increases in the price level; and an alternative explanation, which focuses on "real" technological or preference shocks as the sources of output changes. Coefficients from this system are used to examine the long-run neutrality of nominal quantities with respect to permanent movements in the money stock and the short-run sensitivity of output to inflation.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 91/35.
Date of creation: 01 Mar 1991
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Other versions of this item:
- Carmen M. Reinhart & Vincent R. Reinhart, 1991. "Output Fluctuations and Monetary Shocks: Evidence from Colombia," IMF Staff Papers, Palgrave Macmillan, vol. 38(4), pages 705-735, December.
- Reinhart, Carmen & Reinhart, Vincent, 1991. "Output Fluctuations and Monetary Shocks: Evidence from Colombia," MPRA Paper 6980, University Library of Munich, Germany.
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
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- NEP-ALL-2013-02-16 (All new papers)
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