Abstract
This paper is arranged as follows. Section I discusses definitions of ‘monetarism’ and proposes a very general meaning which can be derived, with minimal restrictions from a widely accepted model of the economy. We suggest that the two principle propositions to be tested are (a) that there is a stable demand for money and (b) that changes in the money supply have been an independent source of changes in prices. Section II examines the long-run relationship between money and nominal income. It reports previous empirical studies and also presents long-run graphical evidence. Section III examines in more detail the question of ‘causality’. The conclusions are summarised in the final section.
We are grateful to the ESRC for support of this study.
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© 1984 Brian Griffiths and Geoffrey E. Wood
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Budd, A., Holly, S., Longbottom, A., Smith, D. (1984). Does Monetarism fit the UK Facts?. In: Griffiths, B., Wood, G.E. (eds) Monetarism in the United Kingdom. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06284-3_6
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DOI: https://doi.org/10.1007/978-1-349-06284-3_6
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