TY - JOUR
T1 - Money, inflation, and output under fiat and commodity standards
AU - Rolnick, Arthur J
AU - Weber, Warren E.
PY - 1997/12
Y1 - 1997/12
N2 - We examine the behavior of money, inflation, and output under fiat and commodity standards to better understand how changes in monetary policy affect economic activity. Using long-term historical data for 15 countries, we find that, under fiat standards, the growth rates of various monetary aggregates are more highly correlated with inflation and with each other than under commodity standards. Money growth, inflation, and output growth are also higher. In contrast, we do not find that money growth is more highly correlated with output growth under one standard than under the other.
AB - We examine the behavior of money, inflation, and output under fiat and commodity standards to better understand how changes in monetary policy affect economic activity. Using long-term historical data for 15 countries, we find that, under fiat standards, the growth rates of various monetary aggregates are more highly correlated with inflation and with each other than under commodity standards. Money growth, inflation, and output growth are also higher. In contrast, we do not find that money growth is more highly correlated with output growth under one standard than under the other.
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U2 - 10.1086/516394
DO - 10.1086/516394
M3 - Article
AN - SCOPUS:0011182722
SN - 0022-3808
VL - 105
SP - 1308
EP - 1321
JO - Journal of Political Economy
JF - Journal of Political Economy
IS - 6
ER -
