The Fiscal and Monetary Dynamics of Israeli Inflation: A Cointegrated Analysis 1970-1987

Michael Beenstock () and Michael Ben-Gad

No 290, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Using quarterly data from 1970-1987 we estimate a simple econometric model in which inflation and the money supply are jointly determined and in which expectations of inflation are rational, or forward-looking. The model is estimated using the recently developed `cointegration' principle in econometrics. The main findings are that Israeli inflation reflected monetary growth which in turn reflected the fiscal deficit, and that the authorities have systematically accommodated inflationary shocks in the execution of monetary policy.

Keywords: Co Integration; Inflation; Israel (search for similar items in EconPapers)
Date: 1989-05
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=290 (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:cpr:ceprdp:290

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=290

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().