Empirical Evidence on the Long-Run Neutrality Hypothesis Using Divisia Money
By employing Fisher and Seater’s (1993) long-run neutrality test, the researchers tested the monetary neutrality proposition in Singapore for the period of 1980-2009. Empirical findings show that monetary neutrality does not hold in Singapore when both the simple-sum money and Divisia money are em...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
International Academy of Business and Economics
2013
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/18016/1/EMPIRICAL%20EVIDENCE%20ON%20THE%20LONG-RUN%20NEUTRALITY%20%28abstract%29.pdf http://ir.unimas.my/id/eprint/18016/ https://mpra.ub.uni-muenchen.de/50020/ |
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| Institution: | Universiti Malaysia Sarawak |
| Language: | English |
| Summary: | By employing Fisher and Seater’s (1993) long-run neutrality test, the researchers tested the monetary neutrality
proposition in Singapore for the period of 1980-2009. Empirical findings show that monetary neutrality does not hold
in Singapore when both the simple-sum money and Divisia money are employed. As both the simple-sum and Divisia
monetary aggregates are non-neutral, monetary authorities may consider their use as a monetary policy tool
affecting real economic activity. |
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