This article uses seasonal integration and co integration techniques to test the hypothesis of neutrality of money, using data from the Iranian economy. Seasonal data for the three variables of money supply, output and prices show that (increase in) money supply and the price level are co integrated at zero frequency, but one does not see such a relationship between (increase in) money supply a...

this article uses seasonal integration and co integration techniques to test the hypothesis of neutrality of money, using data from the iranian economy. seasonal data for the three variables of money supply, output and prices show that (increase in) money supply and the price level are co integrated at zero frequency, but one does not see such a relationship between (increase in) money supply a...

There is no evidence that previous studies, available to Iran’s inflation literature, have used spectral methodology to analyze a possible relationship between inflation and its main determinants within a specific period. Accordingly, the present study investigates the effects of money growth, real output growth, output gap and interest rate changes on inflation at low and high frequencies...

This study investigated the dynamic relationship between money, prices and output in a multivariate structure of casualty analysis in Iran for the two period of 1969 to 2012 (entire period) and 1989 to 2012 (sub-period). This statistical framework has been projected for situations where causal links may have changed over the sample period. Results of a three-variable Vector Error Correction Mod...

this study investigated the dynamic relationship between money, prices and output in a multivariate structure of casualty analysis in iran for the two period of 1969 to 2012 (entire period) and 1989 to 2012 (sub-period). this statistical framework has been projected for situations where causal links may have changed over the sample period. results of a three-variable vector error correction mod...

This paper studies the nature of monetary policy with …nancial intermediaries that provide loans for working capital in a cash-in-advance model with indivisible labor. Monetary policy occurs through money injections either directly to families or to …nancial intermediaries. Injections to families produce an in‡ation tax while injections directly to …nancial intermediaries provide an in‡ation su...

The role of money and its effects on national output have generated a voluminous amount of literature (Blanchard, 1990; Lucas, 1996; Sargent, 1996). Since Friedman and Schwartz (1963) rekindled the research on the effects of money on aggregate output, numerous studies have aimed to characterize and establish the interactions between money and output. Theoretical models are constructed to show t...

This paper studies the relationship between inflation, output, money and interest rates in the euro area, using data spanning 1980–2000. The P model is shown to have considerable empirical support. Thus, the “price gap” or, equivalently, the “real money gap” (the gap between current real balances and long-run equilibrium real balances), has substantial predictive power for future inflation. The...