Relationship among Money, Prices and Aggregate Output in Thailand

Komain Jiranyakul

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the relationship among monetary aggregates, prices, and aggregate output using Thailand’ quarterly data from 1993:Q1 to 2006:Q4. The estimates of money demand function based on the quantity theory indicate a stable long-run relationship between real money demand and aggregate output when M3 is used as monetary aggregate. The estimates of the prices and output equations show that cointegration of the general price level, money stock and aggregate output exists when M1 is used as monetary aggregate. Results suggest that only M3 can be used in the real money demand function while M1 is a key determinant of prices and output. The success of monetary policy should depend on M1 and M3, but not M2 if the target is to stimulate growth and to control inflation.

Keywords: Money; Price Level; Aggregate Output; Cointegration (search for similar items in EconPapers)
JEL-codes: C32 E31 E60 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Empirical Economics Letters 11.8(2009): pp. 1063-1071

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/46963/1/MPRA_paper_46963.pdf original version (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:pra:mprapa:46963

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().