Date of Award
Spring 5-1997
Document Type
Thesis
Degree Name
Master of Arts (MA)
Department
Economics
Committee Director
Raymond S. Strangways
Committee Member
Vinod B. Agarwal
Committee Member
Usman A. Qureshi
Call Number for Print
Special Collections LD4331.E26 C36
Abstract
This thesis examines the linkages among the monetary aggregates, inflation, and the economy through vector auto regression techniques. Multivariate Granger causality tests, variance decompositions and impulse response functions are utilized to examine causal relationships among key economic variables. In 1987, the Federal open Market Committee (FOMC) decided not to establish a specific target range for M1 growth . Since then, the broader M2 measure of money has been the preeminent variable used in implementing monetary policy; however, the results indicate that M1 can be used in predicting inflation and M2 can be used in predicting real GDP. This suggests that the FED should have two intermediate targets and indicators instead of one.
Rights
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DOI
10.25777/aa8g-3w65
Recommended Citation
Camlibel, Levent.
"Is Money Growth Still a Useful Indicator of Inflation?"
(1997). Master of Arts (MA), Thesis, Economics, Old Dominion University, DOI: 10.25777/aa8g-3w65
https://digitalcommons.odu.edu/economics_etds/19