Work

Exchange rates, prices and money: A long‐run perspective

Year: 2001

Type: article

Abstract: In this paper we analyse the long‐run proportionality and neutrality propositions between inflation and money growth and between exchange rate changes and money growth. Using a sample of 100 countries over a thirty‐year period we find that the evidence in favour of these propositions is weak for the low inflation countries and very strong for the high inflation countries. We propose an explanation based on productivity shocks and transaction costs. Copyright © 2001 John Wiley & Sons, Ltd.

Source: International Journal of Finance & Economics

DOI: 10.1002/ijfe.162

Authors: Paul De Grauwe, Marianna Grimaldi

Institution: KU Leuven

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funder: European University Institute

OpenAlex ID: W2005168577