Testing for Long Run Neutrality of Money in Mexico

Gary L. Shelley and Frederick Wallace
Additional contact information
Gary L. Shelley: East Tennessee State University

Macroeconomics from University Library of Munich, Germany

Abstract: The Fisher-Seater methodology is used to investigate long run money neutrality in Mexico from 1932-2001. Long run neutrality is rejected for the full sample period. However, evidence suggests that the rejection is the result of a severe, downward shift in the mean growth rate of real GDP occurring at 1982. Neutrality is not rejected if post-1981 real GDP is adjusted for the change in mean growth or if one uses data only through 1981. The downward shift in mean real GDP growth followed sharp upward movements in the money and inflation series. This finding of non- neutrality in Mexico arising from extreme conditions is similar to that of Boschen and Otrok (1994) for the US.

Keywords: money; neutrality; Mexico (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
Pages: 36 pages
Date: 2004-02-02
New Economics Papers: this item is included in nep-mon
Note: Type of Document - pdf; prepared on Windows2000; pages: 36
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0402/0402003.pdf (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:wpa:wuwpma:0402003

Access Statistics for this paper

More papers in Macroeconomics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).