The causal direction between money and prices. An alternative approach

Published

Journal Article

Causality is viewed as a matter of control. Controllability is captured in Simon's analysis of causality as an asymmetrical relation of recursion between variables in the unobservable data-generating process. Tests of the stability of marginal and conditional distributions for these variables can provide evidence of causal ordering. The causal direction between prices and money in the United States 1950-1985 is assessed. The balance of evidence supports the view that money does not cause prices, and that prices do cause money. © 1991.

Full Text

Duke Authors

Cited Authors

  • Hoover, KD

Published Date

  • January 1, 1991

Published In

Volume / Issue

  • 27 / 3

Start / End Page

  • 381 - 423

International Standard Serial Number (ISSN)

  • 0304-3932

Digital Object Identifier (DOI)

  • 10.1016/0304-3932(91)90015-G

Citation Source

  • Scopus