Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9725862 | International Review of Economics & Finance | 2005 | 19 Pages |
Abstract
Monetarists have long advocated that money is a central variable to the explanation of price inflation. Across a group of major industrial countries, the evidence does not provide a clear support for the monetarists' claims. A change in the nominal interest rate significantly determines price change in the short run, and the effect may be prolonged over time. Further, the relationship between the interest rate and price appears independent of the stance of monetary policy, expansionary or contractionary. Subsequently, changes in the interest rate in response to nonmonetary factors are important determinants of price change in many countries.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Magda Kandil,