Journal of Political Economy Vol. 86 No. 2, Part 1 1978
Is Money Exogenous in Money-Demand Equations
Abstract
Sims's finding that nominal money stock is strictly exogenous in a distributed-lag regression of nominal income on nominal money stock is not inconsistent with the appearance and real income and nominal interest rates as strictly exogenous regressors in the quarterly money-demand equations estimated in real form. This strict exogeneity of real income and interest rates in real money-demand equations is due to the restriction implied by estimation in the real form, and these implicit restrictions seem to conflict with the sample information.
- DOI
- 10.1086/260663
- Volume
- 86
- Issue
- 2, Part 1
- Pages
- 211-228
- Language
- en
- Sources
- openalex crossref