money supply

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  • noun

Words related to money supply

the total stock of money in the economy

References in periodicals archive ?
The top panel in Table 5 presents the maximum eigenvalue test for the M2 monetary aggregate. Consistent with Miyao (1996), we find that the hypothesis of no cointegration cannot be rejected for any of the interest rate measures during 1959:1-1988:4.
Bordo, Choudhri, and Schwartz (1995) estimate a vector error correction model (VECM) using quarterly data from 1921:Q1 to 1941:Q4 for three variables--real gross domestic product (GDP), the implicit GDP deflator, and the M2 monetary aggregate. (17) A VECM is a time-series model similar to a VAR that explicitly accounts for cointegration among the data series--that is, a persistent, long-run relationship between the data series.
When the cointegration analysis is used to investigate transmission mechanisms which include the M2 monetary aggregate, conflicting evidence is obtained regarding the existence of long-run cointegration relationships.
The study showed that the M2 monetary aggregate was cointegrated with real income, real interest rates, nominal interest of medium-term maturity, and the inflation rate, but not with the interest rate of short-term maturity.
"Is the Price Level Tied to the M2 Monetary Aggregate [TABULAR DATA FOR TABLE IV OMITTED] in the Long Run?" American Economic Review, September 1991, 841-58.
"Is the Price Level Tied to the M2 Monetary Aggregate in the Long Run?" The American Economic Review (September 1991), pp.