Money, income and prices under fixed exchange rates: Evidence from causality tests and VARs
This paper investigates the impact of changes in monetary variables on the domestic and foreign sectors, the determinants of central bank policy, and the response to foreign monetary changes in Mexico and India. Multivariate Granger-causality tests, variance decompositions and impulse response functions are utilized to examine propositions regarding causal relationships among key economic variables. The results indicate that domestic monetary policy did not affect output in either country. A substantial balance of payments offset to changes in domestic credit was found in India, but not for Mexico. The Mexican central bank pursued an accommodative monetary policy, but did not sterilize. In India, the central bank sterilized, but did not respond to income or price fluctuations. Output responded in each country to changes in foreign money.
If you experience problems downloading a file, check if you have the proper application to view it first. 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:eee:jmacro:v:15:y:1993:i:4:p:747-768. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.