EconPapers    
Economics at your fingertips  
 

Monetary facts revisited

Pavel Gertler and Boris Hofmann

Journal of International Money and Finance, 2018, vol. 86, issue C, 154-170

Abstract: This paper uses data from 46 economies over the post-war period to revisit two key monetary facts: (i) the link between money growth and inflation and (ii) the link between credit growth and financial crises. The analysis reveals that the former has weakened over time, while the latter has become stronger. This suggests that there is an inverse relationship between the two monetary facts. The money-inflation link is weak and the credit-crisis nexus is strong when inflation is low and financial systems are liberalised, while the reverse holds true in environments of high inflation and less liberalised financial systems.

Keywords: Money growth; Inflation; Credit growth; Financial crises (search for similar items in EconPapers)
JEL-codes: E31 E42 E51 E52 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261560618302274
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Monetary facts revisited (2016) Downloads
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:eee:jimfin:v:86:y:2018:i:c:p:154-170

DOI: 10.1016/j.jimonfin.2018.04.006

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:jimfin:v:86:y:2018:i:c:p:154-170