TY - JOUR
T1 - A direct test of the endogeneity of money
T2 - Implications for Gulf Cooperation Council (GCC) countries
AU - Tas, Bedri Kamil Onur
AU - Togay, Selahattin
PY - 2012/5
Y1 - 2012/5
N2 - This paper contributes to the ongoing discussion about the endogeneity of money supply by empirically investigating the GCC countries. We propose and implement a direct test of money supply endogeneity that depends on econometric specification of exogeneity which has not been used in the literature before. To be able to make comparisons with previous studies, we also conducted Granger Causality tests to analyze the causality relationship between bank credit and money supply. Both of the empirical studies provide empirical evidence for the endogeneity of money supply in GCC countries. The results of the paper have many significant monetary policy implications for the upcoming monetary unification of the GCC countries.
AB - This paper contributes to the ongoing discussion about the endogeneity of money supply by empirically investigating the GCC countries. We propose and implement a direct test of money supply endogeneity that depends on econometric specification of exogeneity which has not been used in the literature before. To be able to make comparisons with previous studies, we also conducted Granger Causality tests to analyze the causality relationship between bank credit and money supply. Both of the empirical studies provide empirical evidence for the endogeneity of money supply in GCC countries. The results of the paper have many significant monetary policy implications for the upcoming monetary unification of the GCC countries.
KW - Endogenous money supply
KW - GCC Countries
KW - Monetary union
KW - Post Keynesian monetary theory
UR - http://www.scopus.com/inward/record.url?scp=84856203396&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84856203396&partnerID=8YFLogxK
U2 - 10.1016/j.econmod.2011.12.015
DO - 10.1016/j.econmod.2011.12.015
M3 - Article
AN - SCOPUS:84856203396
SN - 0264-9993
VL - 29
SP - 577
EP - 585
JO - Economic Modelling
JF - Economic Modelling
IS - 3
ER -