This paper reports estimates of the elasticity of various monetary components in the UK by assessing their ability to explain prices. Tests of the Monetarist proposition, that a unit change in a (weighted) monetary aggregate might lead to a unit change in the price level in the long run, and of the appropriateness of the current practice of constructing monetary aggregates by the simple summation of monetary components, are also performed.
|Number of pages||12|
|Publication status||Published - 1 Jan 1985|
ASJC Scopus subject areas
- Economics and Econometrics