Bahmani-Oskooee and Rehman (2005) showed that in some Asian countries, even though real M1 and M2 monetary aggregates
were cointegrated, the estimated parameters were unstable.
MSI-M1 and MSI-M2 are defined over the financial assets included in the Federal Reserve Board's M1 and M2 monetary aggregates
t] by the nominal seasonally adjusted M2 monetary aggregate
Currency, specie, and bank deposits make up the M2 monetary aggregate
Johansen tests are first conducted using the M1 or M2 monetary aggregate
and industrial output or the price level, with results showing cointegration between each monetary aggregate and output, as well as between each aggregate and the price level.
Hallman, Jeffrey, Richard Porter and David Small, "Is the Price Level Tied to the M2 Monetary Aggregate
in the Long-Run?
Growth in the M2 monetary aggregate
, in contrast, has slowed.
Is the Price Level Tied to the M2 Monetary Aggregate
[TABULAR DATA FOR TABLE IV OMITTED] in the Long Run?