Premium
A Note on Causality Between Money, Wages and Prices in Australia *
Author(s) -
ALSTON JULIAN M.,
CHALFANT JAMES A.
Publication year - 1987
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1987.tb00643.x
Subject(s) - economics , causality (physics) , inflation (cosmology) , univariate , granger causality , monetarism , monetary economics , lag , keynesian economics , monetary policy , econometrics , macroeconomics , multivariate statistics , mathematics , computer network , statistics , physics , quantum mechanics , theoretical physics , computer science
Lead and lag relationships between money, wages. and prices are examined using Australian data. Granger causality tests support univariate causality running from money to both wages and prices. This result is consistent with a monetarist explanation of inflation .