Empirical Evidence on the Long-Run Neutrality Hypothesis Using Divisia Money
AbstractBy employing Fisher and Seater’s (1993) long-run neutrality test, the researchers tested the monetary neutrality proposition in Singapore for the period of 1980-2009. Empirical findings show that monetary neutrality does not hold in Singapore when both the simple-sum money and Divisia money are employed. As both the simple-sum and Divisia monetary aggregates are non-neutral, monetary authorities may consider their use as a monetary policy tool affecting real economic activity.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50020.
Date of creation: 2013
Date of revision:
Monetary Neutrality; Divisia Money; ARIMA Model;
Find related papers by JEL classification:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-24 (All new papers)
- NEP-MON-2013-09-24 (Monetary Economics)
- NEP-SEA-2013-09-24 (South East Asia)
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