Effects of foreign currency component in monetary aggregates on money neutrality

Jimmy RAN, Jan Piaw, Thomas VOON, Guangzhong LI

Research output: Journal PublicationsJournal Article (refereed)peer-review


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.
Original languageEnglish
Pages (from-to)435-438
Number of pages4
JournalEconomics Letters
Issue number3
Publication statusPublished - 1 Jun 2008


  • Foreign currency component
  • M1
  • M2
  • Money neutrality

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