Effects of foreign currency component in monetary aggregates on money neutrality

Document Type

Journal article

Source Publication

Economics Letters

Publication Date

6-1-2008

Volume

99

Issue

3

First Page

435

Last Page

438

Publisher

Elsevier B.V.

Keywords

Foreign currency component, M1, M2, Money neutrality

Abstract

We test the money neutrality from a new angle. The in-sample investigation provides evidence that M1 and M2 with or without foreign currency component affect nominal GDP. The out-of-sample approach shows money tends to affect nominal more than real GDP.

DOI

10.1016/j.econlet.2007.09.008

Print ISSN

01651765

E-ISSN

18737374

Publisher Statement

Copyright © 2007 Elsevier B.V.

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Language

English

Recommended Citation

Ran, J., Voon, J. P., & Li, G. (2008). Effects of foreign currency component in monetary aggregates on money neutrality. Economics Letters, 99(3), 435-438. doi: 10.1016/j.econlet.2007.09.008

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