EconPapers    
Economics at your fingertips  
 

Breaking Trends And The Money-Output Correlation

David G. Fernandez

The Review of Economics and Statistics, 1997, vol. 79, issue 4, 674-679

Abstract: This paper examines the impact on the money-output correlation of a univariate specification that allows time series to be characterized as stationary around a broken trend function. Though pretesting suggests that U.S. real output (industrial production) can be described as broken-trend stationary, this result has only limited impact on the money-output correlation. Before 1985 there is a strong Granger causal relationship between money and broken-detrended output (but not first-differenced output), even when different short-term interest rates are used as regressors. However, after 1985 this relationship weakens significantly, whether or not one determines that output has a unit root. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/003465397557097 (application/pdf)
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:tpr:restat:v:79:y:1997:i:4:p:674-679

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().

 
Page updated 2025-03-20
Handle: RePEc:tpr:restat:v:79:y:1997:i:4:p:674-679