On the Correlations of Nominal Money and Real Output: A Simple Cross-Country Analysis

In: Ekonomický časopis/Journal of Economics, vol. 54, no. 2

Petr Duczynski

Detaily:

Rok, strany: 2006, 126 - 138

Kľúčové slová:

correlation coefficients, half-lag and half-lead growth rates, nomi-nal monetary aggregates, real output JEL Classification: E32, E51, E52, N10

Typ článku: vedecký článok

O článku:

The relationship between real and nominal variables is a fundamental problem in macroeconomics. This study examines correlations of nominal monetary ag-gregates (the monetary base, M1, and M2) and real output in a broad sample of countries in the 1975 – 2000 period. On average we typically observe small but statistically significantly positive correlations. For the monetary base and M1, there is a tendency of money changes to precede output changes since the half lag in money is more strongly correlated with output than the half lead in money; M1 and M2 are more strongly associated with real output than the monetary base. In high-inflation countries, the given correlations are typically negative, which indicates a possibility that very high money growth is harmful for the growth of real output.

Ako citovať:

ISO 690:

Duczynski, P. 2006. On the Correlations of Nominal Money and Real Output: A Simple Cross-Country Analysis. In Ekonomický časopis/Journal of Economics, vol. 54, no.2, pp. 126-138. 0013-3035.

APA:

Duczynski, P. (2006). On the Correlations of Nominal Money and Real Output: A Simple Cross-Country Analysis. Ekonomický časopis/Journal of Economics, 54(2), 126-138. 0013-3035.