Testing the quantity theory of money in Greece

Ozmen E.

Applied Economics Letters, vol.10, no.15, pp.971-974, 2003 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 10 Issue: 15
  • Publication Date: 2003
  • Doi Number: 10.1080/1350485032000164044
  • Journal Name: Applied Economics Letters
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.971-974
  • Middle East Technical University Affiliated: Yes

Abstract

This paper investigates whether the Greek data actually support the monetarist hypotheses as argued by Karfakis. The results based on both ARDL and Johansen procedures consistently suggest that money and nominal income (prices) are endogenous for the parameters of the long-run evolution of velocity (real money balances). Thus, the basic postulation of monetarism, the exogeneity of money, appears not to be supported by the Greek data.