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Domestic Credit and the Balance of Payments: Some Empirical Results

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  • Llanto, Gilberto M. Author_Email:

Abstract

The monetary approach to the balance of payments (BOP) takes the view that domestic credit is exogenous to BOP and that it is deteriorated by the excess money, which results from domestic credit expansion. This article determines whether in fact the assertion is true. Utilizing the method developed by Grange and Sims, evidence lends validity to the hypothesis.

Suggested Citation

  • Llanto, Gilberto M. Author_Email:, "undated". "Domestic Credit and the Balance of Payments: Some Empirical Results," Philippine Journal of Development jpd_1987_vol__xiv_no__2-a, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:pjdevt:jpd_1987_vol__xiv_no__2-a
    DOI: https://doi.org/10.62986/pjd1987.14.2a
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    1. Nelson, Charles R., 1979. "Discussion of the Zellner and Schwert papers," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 10(1), pages 97-102, January.
    2. Zellner, Arnold, 1979. "Causality and econometrics," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 10(1), pages 9-54, January.
    3. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    4. Johnson, Harry G., 1977. "The monetary approach to the balance of payments : A nontechnical guide," Journal of International Economics, Elsevier, vol. 7(3), pages 251-268, August.
    5. Craig, Gary A, 1981. "A Monetary Approach to the Balance of Trade," American Economic Review, American Economic Association, vol. 71(3), pages 460-466, June.
    6. Hsiao, Cheng, 1981. "Autoregressive modelling and money-income causality detection," Journal of Monetary Economics, Elsevier, vol. 7(1), pages 85-106.
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    Cited by:

    1. Aldaba, Fernando T. Author_Email:, "undated". "Philippine Development: A Research Journey Through the Philippine Journal of Development," Philippine Journal of Development pjd_2002_vol__xxix_no__2-, Philippine Institute for Development Studies.

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