IDEAS home Printed from https://ideas.repec.org/a/eee/moneco/v11y1983i2p207-224.html

Real effects of anticipated and unanticipated money : Some problems of estimation and hypothesis testing

Author

Listed:
  • Buiter, Willem H.

Abstract

The paper addresses two issues that arise in estimation of testing of the real effects of anticipated and unanticipated money. First it is shown that identification of the effects of unanticipated (or unperceived) monetary growth on real output is possible only if the a priori restrict ion is imposed that monetary growth does not depend on unanticipated (or unperceived) output. Second, it is shown that anticipated money can enter "semi-reduced form" output equations of the kind estimated by Barro, through three additional channels not allowed for in existing empirical work. These are 1) past and present anticipations of future monetary growth (the inflation tax channel), 2) expectations of monetary growth in a given period conditioned at various preceding dates (the Fischer-Phelps-Taylor effect) and 3) past and present revisions in forecasts of monetary growth (the Turnovsky-Weiss effect). The presence of the first of these would mean that alternative open-loop monetary growth rules have real effects. The presence of the other two implies that monetary feedback rules can have real effects.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Buiter, Willem H., 1983. "Real effects of anticipated and unanticipated money : Some problems of estimation and hypothesis testing," Journal of Monetary Economics, Elsevier, vol. 11(2), pages 207-224.
    • Handle: RePEc:eee:moneco:v:11:y:1983:i:2:p:207-224
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0304-3932(83)90030-2
    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. Mulder, C.B., 1986. "Testing Korteweg's rational expectations model for a small open economy," Other publications TiSEM c52e6c80-834d-49c7-ae6a-b, Tilburg University, School of Economics and Management.
    2. Gottschalk, Jan, 2002. "Keynesian and monetarist views on the German unemployment problem: theory and evidence," Kiel Working Papers 1096, Kiel Institute for the World Economy.
    3. William H. Branson, 1984. "Exchange Rate Policy after a Decade of "Floating"," NBER Chapters, in: Exchange Rate Theory and Practice, pages 79-118, National Bureau of Economic Research, Inc.
    4. Gianluca Cubadda & Domenico Mignacca, 1994. "Is Money Neutral? Some Evidence for Italy," International Finance 9410001, University Library of Munich, Germany, revised 09 Nov 1994.
    5. Ajisafe, Rufus A. & Adesina, Kehinde E. & Okunade, Solomon O., . "Effects of Anticipated and Unanticipated Monetary Policy on Output in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 10(2).
    6. K. Alec Chrystal, 1984. "Money and sectoral output dynamics in the United States, quarterly 1950/III to 1982/IV," Working Papers 1984-020, Federal Reserve Bank of St. Louis.

    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:11:y:1983:i:2:p:207-224. 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.