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The Effects of Monetary Growth on Non-Traded Goods Sector: An Empirical Investigation

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Listed:
  • Joonmo Cho

    (Soongsil University)

  • Ashraf Nakibullah

    (University of Bahrain)

Abstract

This paper empirically studies the effects of monetary growth on non-traded goods sectors in a two-country framework. We present empirical evidence from the Canadian experience for the period with flexible exchange rates. That is, we treat Canada as the home country and the United States (US) as the foreign country. Our general finding is that both the Canadian and US monetary growths matter for the fluctuations of the Canadian output of non-traded goods. In particular, we find that the Canadian (US) unanticipated monetary shocks raise the ouput of the Canadian non-traded goods.

Suggested Citation

  • Joonmo Cho & Ashraf Nakibullah, 1994. "The Effects of Monetary Growth on Non-Traded Goods Sector: An Empirical Investigation," Korean Economic Review, Korean Economic Association, vol. 10, pages 257-276.
    • Handle: RePEc:kea:keappr:ker-199412-10-1-14
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