Abstract
Recent failure to observe significant relationships between price-level changes and lagged money growth, when both are measured on a quarter-to-quarter basis, has been called the disappearing money-inflation phenomenon. By examining only short-run, dynamic adjustments, regression models of quarterly price-level changes may have a tendency to non-rejection of the null hypothesis of insignificant coefficients on past-lagged money. Using the techniques of unit root and cointegration testing, the evidence uncovered in this paper suggests that a longer-run link between inflation and money, variously defined, has not disappeared.
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Schnitzel, P. On the disappearing money-to-inflation connection. Atlantic Economic Journal 22, 24–36 (1994). https://doi.org/10.1007/BF02301796
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DOI: https://doi.org/10.1007/BF02301796