Borsa Istanbul Review (Jun 2015)

Monetary shifts and co-movements in spending, growth, and inflation: Evidence from developing and advanced countries

  • Magda Kandil

DOI
https://doi.org/10.1016/j.bir.2015.02.001
Journal volume & issue
Vol. 15, no. 2
pp. 76 – 92

Abstract

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Using annual data, the paper studies the time-series evidence regarding the allocation of monetary growth shifts between demand components, real growth and price inflation in a sample of developing and advanced countries. The evidence reveals patterns of interaction between demand shifts and the real and inflationary effects of monetary policy. These patterns provide sharp differences in the distribution of monetary shocks across economic variables in developing and advanced countries. The paper evaluates the evidence and draws policy implications regarding potential constraints on monetary policy.

Keywords