Year: 1981
Type: report
Abstract: This paper uses contemporaneous monetary data to carry out econometric tests of the "equilibrium" approach to modelling the relation between monetary disturbances and macroeconomic fluctuations.The theoretical analysis introduces into an equilibrium macroeconomic model the availability of preliminary data on current monetary aggregates and the process of accumulation of revised monetary data.The econometric analysis tests two hypotheses derived from this extended model.One hypothesis concerns the neutrality of perceived monetary policy.The other hypothesis concerns the nonneutrality of errors in preliminary monetary data.The econometric results imply rejection of both of these hypotheses.These tests provide strong evidence against the reality of the equilibrium approach.
DOI: 10.3386/w0558
Authors: John Boschen, Herschel Grossman
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1982306025