Has the long-run velocity of M2 shifted? Evidence from the P model

Has the long-run velocity of M2 shifted? Evidence from the P model

The P-Star model forecasts inflation by exploiting the stability of M2 velocity and the real economy's tendency to operate near its potential. Inverting the model provides a test of one of its basic assumptions: the constancy of M2's long-run velocity.

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Bibliographische Detailangaben
Veröffentlicht in:Economic review (Cleveland) 1993-01, Vol.29 (1), p.14
Hauptverfasser: Hallman, J, Anderson, R
Format: Artikel
Sprache:eng
Schlagworte:
Economic models
Inflation
Monetary policy
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Zusammenfassung:The P-Star model forecasts inflation by exploiting the stability of M2 velocity and the real economy's tendency to operate near its potential. Inverting the model provides a test of one of its basic assumptions: the constancy of M2's long-run velocity.
ISSN:0013-0281
2163-372X