https://ogma.newcastle.edu.au/vital/access/ /manager/Index en-au 5 https://ogma.newcastle.edu.au/vital/access/ /manager/Repository/uon:39538 Wed 27 Jul 2022 14:19:40 AEST ]]> https://ogma.newcastle.edu.au/vital/access/ /manager/Repository/uon:40256 Wed 13 Mar 2024 08:55:46 AEDT ]]> https://ogma.newcastle.edu.au/vital/access/ /manager/Repository/uon:38465 Thu 23 Sep 2021 16:25:37 AEST ]]> https://ogma.newcastle.edu.au/vital/access/ /manager/Repository/uon:33732 the money growth-inflation relation is not conditional on the stability of the money-demand function. The autoregressive distributed-lag (ARDL) bounds-testing results suggest that, across the study period, the Thai money stock (narrow or broad), real output, prices, interest rates and exchange rates maintained a long-run equilibrium relationship. The associated error-correction model of inflation confirms the cointegral relationship among money (narrow or broad), real output, prices, interest rates and exchange rates. It also suggests that money growth has a significant distributed-lag impact on inflation. The presence of this money growth-inflation relationship was associated with a stable narrow money-demand function, whereas the broad money-demand function remained unstable. These results for the study period are consistent with the view that the causal relationship between money growth and inflation holds in Thailand under inflation targeting when the Bank of Thailand deploys a short-term policy interest rate, rather than a monetary aggregate, as the instrument of monetary policy and that this relationship is not conditional on the stability of the money-demand function.]]> Thu 13 Dec 2018 15:22:16 AEDT ]]> https://ogma.newcastle.edu.au/vital/access/ /manager/Repository/uon:37223 Thu 03 Sep 2020 10:00:30 AEST ]]> https://ogma.newcastle.edu.au/vital/access/ /manager/Repository/uon:5066 Sat 24 Mar 2018 07:48:54 AEDT ]]> https://ogma.newcastle.edu.au/vital/access/ /manager/Repository/uon:49945 Fri 16 Jun 2023 11:57:36 AEST ]]> https://ogma.newcastle.edu.au/vital/access/ /manager/Repository/uon:41850 causally related to inflation across countries and over time, irrespective of the exchange rate regime and stability of the money-demand function. Nevertheless, emerging literature suggests a diminishing role of money in the conduct of monetary policy for price stability, especially under inflation targeting. Monetary policy in Australia under inflation targeting since 1993 is an example of policy that denies a relationship between money growth and inflation. The proposition that money does not matter insofar as inflation is concerned seems odd in both theory and the best-practice monetary policy for price stability. This paper uses annual data for the period 1970-2017 and quarterly data for the period 1970Q1-2015Q1. It deploys both the Johansen cointegration approach and the autoregressive distributed lag (ARDL) cointegration approach to investigate for Australia whether money, real output, prices and the exchange rate (non-stationary variables) maintain the long-run price-level relationship that the classical monetary theory suggests in the presence of such stationary variables as the domestic and foreign interest rates. As expected, the empirical findings for Australia are consistent with the classical long-run price-level relationship between money, real output, prices and the exchange rate. The error-correction model of inflation confirms the presence of a cointegral relationship among these variables; it also provides strong evidence of a short-run causal relationship between money supply growth and inflation. On the basis of a priori theoretical predictions and empirical findings, the paper draws the conclusion that the monetary aggregate and its growth rate matter insofar as inflation is concerned, irrespective of the strategy of monetary policy for price stability.]]> Fri 12 Aug 2022 15:33:29 AEST ]]>