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Money and output: New evidence based on wavelet coherence

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  • Caraiani, Petre

Abstract

We reassess the relationship between money and output using quarterly data from the US economy. We use several tools based on wavelets, the wavelet power transform and the wavelet coherence with which we analyze this relationship in both time and frequency. We find evidence of a weaker relationship within the Great Moderation as well as a stronger relationship during the Great Recession.

Suggested Citation

  • Caraiani, Petre, 2012. "Money and output: New evidence based on wavelet coherence," Economics Letters, Elsevier, vol. 116(3), pages 547-550.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:547-550
    DOI: 10.1016/j.econlet.2012.02.032
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    References listed on IDEAS

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    More about this item

    Keywords

    Business cycles; Money; Wavelets;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates

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