The Relationship Between Money and Output in the Czech Republic Evidence from Var Analysis

Vladimír Tomšík and Dana Viktorová

Eastern European Economics, 2006, vol. 44, issue 2, 23-39

Abstract: This paper presents empirical evidence on money and output in the Czech Republic. The analysis of the effects of monetary phenomena on the real economy focuses heavily on evidence from vector autoregressions (VARs). The paper also examines the Granger causality between the real money supply and real output, finding that real output Granger causes real money supply. This causality is reflected several times in the impulse response functions in the VAR analysis. Finally, the authors impose output, money supply, interest rate, and depreciation shocks to test the responses of all endogenous variables in the VAR model. They find that the most significant and long-standing response is that of real output to the real interest rate shock. The results indicate that the real interest rate has played a primary role in the development of real output in the Czech Republic.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=R08U85612L885678 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:eaeuec:v:44:y:2006:i:2:p:23-39

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MEEE20

Access Statistics for this article

More articles in Eastern European Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().