IDEAS home Printed from https://ideas.repec.org/a/oup/ecinqu/v27y1989i2p197-217.html
   My bibliography  Save this article

Do Prices Lead Money? A Reexamination of the Neutrality Hypothesis

Author

Listed:
  • Thoma, Mark A

Abstract

In one class of theoretical models, real effects occur only if changes in money growth are expected in some future period. If expected in the current period, they are neutral. Some empirical models examine the neutrality of expected current money growth, but do not address the neutrality of expected future growth. This paper develops an empirical model that explicitly incorporates expected future changes in money growth. A reexamination of the rationality, neutrality, and macrorational expectations hypotheses over a sample of four countries suggests that the use of expected future money growth results in strong rejections of the neutrality hypothesis. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Thoma, Mark A, 1989. "Do Prices Lead Money? A Reexamination of the Neutrality Hypothesis," Economic Inquiry, Western Economic Association International, vol. 27(2), pages 197-217, April.
  • Handle: RePEc:oup:ecinqu:v:27:y:1989:i:2:p:197-217
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Shelley, Gary L. & Wallace, Frederick H., 1995. "A reexamination of Mishkin's neutrality test," Journal of Economics and Business, Elsevier, vol. 47(3), pages 255-265, August.
    2. W D A Bryant, 2009. "General Equilibrium:Theory and Evidence," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6875, Juni.
    3. Michener, Ron, 1998. "Inflation, Expectations, and Output: Lucas's Islands Revisited," Journal of Macroeconomics, Elsevier, vol. 20(4), pages 767-783, October.
    4. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.

    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:oup:ecinqu:v:27:y:1989:i:2:p:197-217. 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    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.