A meta-analysis of the multiplier effects of the money supply on prices

Bui Dieu Thao Nguyen
Additional contact information
Bui Dieu Thao Nguyen: GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université, CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper seeks to identify what drives the heterogeneity of the empirical results regarding the macro-e conomic effect of the money supply on prices. We carried out a meta-regression analysis on a sample of 261 estimates of the quantity theory of money's coefficient and obtained a set of characteristics possibly impacting the estimated values. On statistical (and other) grounds, we found it appropriate to investigate two separate subsamples: a subsample consisting of multiplier effects obtained from dynamic linear models with or without error correcting mechanisms or from VECM models, and the other subsample consisting of the multiplier effects obtained from the static linear models or cointegration relation or models with static simultaneous equations. Once the potential biases linked to the authors' publication strategies had been taken into account, the literature led to two very distinct types of effects: an effect in which money has little or no impact on prices, and an effect in which money plays on prices in accordance with what macroeconomic theory suggests (with a multiplier effect close to 1). On the other hand, the nature of the econometric model used to estimate these multiplier effects appeared to play a major role in the explanation for this heterogeneity of the published results.

Keywords: Inflation; Money supply; Multiplier effects; Meta-regression (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Published in Empirica, 2023, ⟨10.1007/s10663-023-09580-1⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-04194804

DOI: 10.1007/s10663-023-09580-1

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().