Long Run Neutrality of Money in Mexico

Frederick Wallace and Gary L. Shelley ()
Additional contact information
Gary L. Shelley: Lecturer in Economics and Finance, Department of Economics, Finance, and Urban Studies, East Tennessee State University, Johnson City, Tennessee, USA

Economía Mexicana NUEVA ÉPOCA, 2007, vol. XVI, issue 2, 219-238

Abstract: The Fisher-Seater (FS) methodology is used to investigate long run money neutrality with respect to real GDP and real output in ten selected industries in Mexico. Size distortions and low power of the FS test, issues first raised by Coe and Nason (2003, 2004), are addressed using the Coe-Nason bootstrapping procedure. The evidence indicates that long run money neutrality can be rejected for real GDP and for up to five of the ten industrial sectors studied. These findings indicate that the effects of monetary policy are likely to differ across sectors even in the long run.

Keywords: money neutrality; Fisher-Seater Test; bootstrapping. (search for similar items in EconPapers)
JEL-codes: E31 E52 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.economiamexicana.cide.edu/num_anteriores/XVI-2/02_WALLACE.pdf (application/pdf)

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:emc:ecomex:v:16:y:2007:i:2:p:219-238

Access Statistics for this article

Economía Mexicana NUEVA ÉPOCA is currently edited by Juan Rosellón

More articles in Economía Mexicana NUEVA ÉPOCA from CIDE, División de Economía Contact information at EDIRC.
Bibliographic data for series maintained by Ricardo Tiscareño ( this e-mail address is bad, please contact ).