Testing Monetarism

adaptive expectations aggregate argument autoregressive B₂ causality Chapter classical dichotomy coefficients commodities consumption Cowles Commission cycle debate demand for money determined dynamic econometric econometric model economic theory economists effect empirical endogenous variables equilibrium error term estimation evidence exchange rate exogenous expenditure explained fiscal policy Friedman full employment Granger Granger causality Hayek Hendry incomes policy interest elasticity interest rate investment Keynes Keynesian model LM curve long run Lucas macro-economic ment misspecified monetarism monetarist monetary policy monetary theory money illusion money multiplier money stock money supply money wage neoclassical parameters period Phillips Curve predictions price level problem proposition quantity theory random rate of interest rational expectations real output real wage regression relationship relative prices restrictions Sargent serial correlation short run Sims single equation ß₁ stable Stein structural theoretical theory of money transmission mechanism unemployment velocity Walrasian zero