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2006 | 54 | 2 | 126-138
Article title

ON THE CORRELATION OF NOMINAL MONEY AND REAL OUTPUT: A SIMPLE CROSS-COUNTRY ANALYSIS

Authors
Title variants
Languages of publication
EN
Abstracts
EN
The relationship between real and nominal variables is a fundamental problem in macroeconomics. This study examines correlations of nominal monetary aggregates (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.
Contributors
  • P. Duczynski, Ekonomický ústav SAV, Sancová 56, 811 05 Bratislava 1, Slovak Republic
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
06SKAAAA01152669
YADDA identifier
bwmeta1.element.5997d3e8-d4df-34b3-bb3c-d9a8ddd1cb99
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