Output Fluctuations and Monetary Shocks: Evidence from Colombia

Carmen Reinhart and Vincent Reinhart

IMF Staff Papers, 1991, vol. 38, issue 4, 705-735

Abstract: Using annual data for Colombia over the last 30 years, we test opposing theories that explain macroeconomic fluctuations: the neoclassical synthesis, which posits that in the presence of temporary price rigidity an unanticipated monetary expansion produces output gains that erode over time with increases in the price level; and an alternative explanation, which focuses on "real" technological or preference shocks as the sources of output changes. Coefficients from this system are used to examine the long-run neutrality of nominal quantities with respect to permanent movements in the money stock and the short-run sensitivity of output to inflation.

JEL-codes: E3 (search for similar items in EconPapers)
Date: 1991
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Working Paper: Output Fluctuations and Monetary Shocks: Evidence From Colombia (1991)
Working Paper: Output Fluctuations and Monetary Shocks (1991)
Working Paper: Output Fluctuations and Monetary Shocks: Evidence from Colombia (1991)
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Persistent link: https://EconPapers.repec.org/RePEc:pal:imfstp:v:38:y:1991:i:4:p:705-735

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