de Grauwe, Paul and Polan, Magdalena (2005) Is inflation always and everywhere a monetary phenomenon? Scandinavian Journal of Economics, 107 (2). pp. 239-259. ISSN 0347-0520
Abstract
Using a sample of about 160 countries over the last 30 years, we test for the quantity theory relationship between money and inflation. When analysing the full sample of countries, we find a strong positive relation between long-run inflation and the money growth rate. The relation is not proportional, however. The strong link between inflation and money growth is almost wholly due to the presence of high-(or hyper-) inflation countries in the sample. The relationship between inflation and money growth for low-inflation countries (on average less than 10% per annum over the last 30 years) is weak.
| Item Type: | Article |
|---|---|
| Official URL: | http://onlinelibrary.wiley.com/journal/10.1111/%28... |
| Additional Information: | © 2005 The editors of The Scandinavian Journal of Economics |
| Library of Congress subject classification: | H Social Sciences > HB Economic Theory |
| Journal of Economic Literature Classification System: | E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E40 - General E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General |
| Sets: | Departments > European Institute Collections > Economists Online |
| Date Deposited: | 05 Oct 2012 11:09 |
| URL: | http://eprints.lse.ac.uk/46584/ |
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