Output Fluctuations and Monetary Shocks: Evidence from Colombia
AbstractUsing annual data for Colombia over the last 30 years, we test competing 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 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 University Library of Munich, Germany in its series MPRA Paper with number 6980.
Date of creation: Dec 1991
Date of revision:
Publication status: Published in IMF Staff Papers 4.38(1991): pp. 705-735
Colombia; inflation; growth; exchange rates; VAR;
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.
- Vincent Reinhart & Carmen Reinhart, 1991. "Output Fluctuations and Monetary Shocks: Evidence from Colombia," IMF Working Papers 91/35, International Monetary Fund.
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- F3 - International Economics - - International Finance
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
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