The Relationship Between Money and Income in Thailand: Some Evidence for the 1980s Using a Cointegration Approach

Rungsun Hataiseree and Anthony Phipps

No 213, Working Papers from University of Sydney, School of Economics

Abstract: This paper uses cointegration and vector auto regression techniques to examine which, if any, of the financial aggregates - the monetary base, M1, M2 or credit - is an appropriate intermediate target for the Thai monetary authorities. From the spectrum of monetary aggregates, M1 seems to be the best leading indicator of money income and the most suitable intermediate target. M1 was found to have a cointegrating relationship with nominal income in the long run and to Granger-cause nominal income in the short run. Overall, the results suggest that a higher weight should be attached to M1 than to other money/credit aggregates in the formulation and conduct of Thai monetary policy.

Keywords: Thailand; money-income relationship; monetary policy; intermediate target; cointegration; vector auto regression (search for similar items in EconPapers)
Date: 1995-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/2123/7490

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:syd:wpaper:2123/7490

Access Statistics for this paper

More papers in Working Papers from University of Sydney, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Vanessa Holcombe ().