Year: 2008
Type: article
Abstract: Narrow and broad money measures (including Divisia aggregates) have been found to have explanatory power for UK output in backward‐looking specifications of the IS curve. In this paper, we explore whether or not real balances enter into a forward‐looking IS curve for the UK. To do this, we test for additive separability between consumption and money over a sizeable part of the post‐Exchange Rate Mechanism period using non‐parametric methods. A main finding is that the UK data seem to be broadly consistent with additive separability for the more recent period from 1999 to 2007.
Source: Manchester School
Authors: BARRY E. JONES, LIVIO STRACCA
Institutions: Binghamton University, European Central Bank
Language: English
Domain: Social Sciences
Open Access status: bronze
Funder: Leverhulme Trust
OpenAlex ID: W1973274297