Output Fluctuations and Monetary Shocks: Evidence from Colombia

Carmen Reinhart and Vincent Reinhart

MPRA Paper from University Library of Munich, Germany

Abstract: Using annual data for Colombia over the last 30 years, we test competing 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 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.

Keywords: Colombia; inflation; growth; exchange rates; VAR (search for similar items in EconPapers)
JEL-codes: E3 F3 F4 (search for similar items in EconPapers)
Date: 1991-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Published in IMF Staff Papers 4.38(1991): pp. 705-735

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/6980/1/MPRA_paper_6980.pdf original version (application/pdf)

Related works:
Journal Article: Output Fluctuations and Monetary Shocks: Evidence from Colombia (1991)
Working Paper: Output Fluctuations and Monetary Shocks: Evidence From Colombia (1991)
Working Paper: Output Fluctuations and Monetary Shocks (1991)
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:6980

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 ().