IDEAS home Printed from https://ideas.repec.org/a/eee/moneco/v10y1982i1p1-23.html

The timing of monetary and price changes and the international transmission of inflation

Author

Listed:
  • Cassese, Anthony
  • Lothian, James R.

Abstract

This paper presents a theoretical and empirical investigation into timing relationships between variables within and across industrialized countries. In the analysis we highlight the two polar cases of completely closed and open economies and draw some implications for timing between monetary expansion and inflation, inter-country comparisons of inflation rates and interest rates, and comparisons of central bank behavior. The Granger-causality test is applied in a bivariate fashion to these groups of variables. The main empirical results of our analysis are: (1) Domestic monetary expansion appears to lead inflation in the sense that money Granger-causes prices without feedback, contradicting an implication of the monetary approach to the balance of payments. (2) Hardly any significant timing relationship exists between domestic and foreign rates of inflation during the fixed exchange rate period, providing no evidence for a generalized "law of one price." (3) Some sterilization of official reserve inflows was successfully performed by the non-reserve central banks, except for Canada. (4) U.S. interest rates Granger-cause foreign rates, providing evidence of some international transmission via asset markets.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Cassese, Anthony & Lothian, James R., 1982. "The timing of monetary and price changes and the international transmission of inflation," Journal of Monetary Economics, Elsevier, vol. 10(1), pages 1-23, July.
    • Handle: RePEc:eee:moneco:v:10:y:1982:i:1:p:1-23
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304-3932(82)80002-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lothian, James R., 2016. "Purchasing power parity and the behavior of prices and nominal exchange rates across exchange-rate regimes," Journal of International Money and Finance, Elsevier, vol. 69(C), pages 5-21.
    2. Lothian, James R. & Huffman, Wallace E., 1984. "The Gold Standard And The Transmission Of Business Cycles: 1833-1933," ISU General Staff Papers 198401010800001135, Iowa State University, Department of Economics.
    3. G L Clark, 1984. "Price Shocks and the Components of Urban Inflation," Environment and Planning A, , vol. 16(12), pages 1633-1648, December.
    4. Vansteenkiste, Isabel, 2009. "What Triggers Prolonged Inflation Regimes? A Historical Analysis," Working Paper Series 1109, European Central Bank.
    5. Wallace E. Huffman & James R. Lothian, 1984. "The Gold Standard and the Transmission of Business Cycles, 1833-1932," NBER Chapters, in: A Retrospective on the Classical Gold Standard, 1821-1931, pages 455-512, National Bureau of Economic Research, Inc.
    6. Bjorn Wahlroos, 1984. "Money and Prices in a Small Economy," Discussion Papers 611, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    7. Kenny, Geoff & McGettigan, Donal, 1996. "Non-Traded, Traded and Aggregate Inflation In Ireland (Part 2)," Research Technical Papers 3B/RT/96, Central Bank of Ireland.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:moneco:v:10:y:1982:i:1:p:1-23. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505566 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.