Simon, Péter (2023) Analysis of the Relationship between Money Growth and Inflation Using Wavelet Coherency. FINANCIAL AND ECONOMIC REVIEW, 22 (4). pp. 58-81. ISSN 2415-9271
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Abstract
Different theories of money lead to different conclusions about whether there is a stable long-run relationship between money growth and inflation. In this analysis, the author examines the wavelet coherency between the growth in the M2 monetary aggregate and inflation in Hungary. Based on the findings, there is no robust long-run relationship between the two variables. When filtering out movements in the HUF exchange rate, the coherency between money growth and inflation is eliminated even over the period from the mid-2000s to the early 2010s. This also empirically supports the assumption that monetary policy does not affect inflation by shaping the money supply.
| Item Type: | Article |
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| Uncontrolled Keywords: | inflation, money supply, interest rates, wavelet transform |
| Subjects: | H Social Sciences / társadalomtudományok > HG Finance / pénzügy |
| Depositing User: | Beáta Bavalicsné Kerekes |
| Date Deposited: | 10 Jan 2024 14:35 |
| Last Modified: | 10 Jan 2024 14:35 |
| URI: | http://real.mtak.hu/id/eprint/184361 |
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