The long-run relationship between money and prices in Mexico: 1969-2010.

Gomez-Ruano, Gerardo (2014): The long-run relationship between money and prices in Mexico: 1969-2010.

Abstract

This paper performs a spectral analysis (univariate and bivariate) of monthly series of growth in money (a narrow and a broad aggregate) and in prices for Mexico. This analysis allows the identification of the most important frequencies for each series, as well as of some measures of association between the series, at different frequencies. In particular, zero frequency measures, typically used for identifying the long-run relationship between money and prices, are obtained. In addition to the analysis of the entire series (1969-2010), a rolling sample analysis for the zero frequency is also carried out to allow for changes in the long-run relationships.

• Item Type: MPRA Paper
• Language: English
• Keywords: quantitative theory; spectral analysis; zero frequency; long run; money aggregates; prices; inflation
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E39 - Other; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E59 - Other; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N16 - Latin America ; Caribbean

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