Year: 1980
Type: report
Abstract: This paper is an application of efficient markets theory to analyze empirically the relationship of money supply growth and long-term interest rates. This approach has the advantage over earlier research on this subject in that it imposes a theoretical structure on this relationship that allows easier interpretation of the empirical results as well as more powerful statistical tests. In the interest of ascertaining the robustness of the results, many different empirical tests are carried out in this paper, and they uniformly do not support the proposition that increases in the money supply are correlated with declines in long rates.
DOI: 10.3386/w0517
Author: Frederic Mishkin
Institution: University of Chicago
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3124626919