Effects of foreign currency component in monetary aggregates on money neutrality

Jimmy RAN; Jan Piaw, Thomas VOON; Guangzhong LI

doi:10.1016/j.econlet.2007.09.008

Effects of foreign currency component in monetary aggregates on money neutrality

Jimmy RAN, Jan Piaw, Thomas VOON, Guangzhong LI

Department of Economics

Research output: Journal Publications › Journal Article (refereed) › peer-review

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.

Original language	English
Pages (from-to)	435-438
Number of pages	4
Journal	Economics Letters
Volume	99
Issue number	3
DOIs	https://doi.org/10.1016/j.econlet.2007.09.008
Publication status	Published - 1 Jun 2008

Funding

We wish to thank Clive W.J. Granger for his valuable suggestions to apply the modified Diebold and Mariano test in our out-of-sample analysis. We like to thank Ronald Balvers and an anonymous referee for their valuable comments.

Keywords

Foreign currency component
M1
M2
Money neutrality

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10.1016/j.econlet.2007.09.008

Cite this

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title = "Effects of foreign currency component in monetary aggregates on 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.",

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author = "Jimmy RAN and VOON, {Jan Piaw, Thomas} and Guangzhong LI",

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AU - VOON, Jan Piaw, Thomas

AU - LI, Guangzhong

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AB - 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.

KW - Foreign currency component

KW - M1

KW - M2

KW - Money neutrality

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DO - 10.1016/j.econlet.2007.09.008

M3 - Journal Article (refereed)

SN - 0165-1765

VL - 99

SP - 435

EP - 438

JO - Economics Letters

JF - Economics Letters

IS - 3

ER -

Effects of foreign currency component in monetary aggregates on money neutrality

Abstract

Funding

Keywords

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