Hasan, Mohammad S (2010) Modeling the Dynamics of Money Income from a Vector Correction Model. The Journal of Developing Areas, 43 (2). pp. 233-253. ISSN 0022-037X .
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| Official URL http://dx.doi.org/10.1353/jda.0.0067 |
Abstract
The purpose of this paper is to re-examine the empirical relationship among alternative monetary aggregates (M1 and M2), output, prices, interest rates and exchange rates in India. The results of a five-variate vector error correction model are indicative of a bi-directional causality between each of the monetary aggregates and prices. Our findings of a feedback relationship make each of the monetary aggregates a poor intermediate target and informational variable. Moreover, contrary to most recent research in this area, the results are supportive of the real business-cycle view and the Keynesian monetary accommodation hypothesis rather than the monetarists’ theory of the business cycle.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences |
| Divisions: | Faculties > Social Sciences > Kent Business School > Accounting and Finance |
| Depositing User: | Rebecca Stevenson |
| Date Deposited: | 06 Jan 2010 11:09 |
| Last Modified: | 06 Jan 2010 11:09 |
| Resource URI: | http://kar.kent.ac.uk/id/eprint/23564 (The current URI for this page, for reference purposes) |
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