View More View Less
  • 1 Juraj Dobrila University of Pula, Croatia, Hungary
Restricted access

Purchase article

USD  $25.00

1 year subscription (Individual Only)

USD  $700.00

The concept of money neutrality is an important pillar of the mainstream economic literature. It implies that autonomous changes in the money supply have no influence on real macroeconomic variables in the long run. The goal of this paper is to test the validity of (long-run) money neutrality proposition in the CEE (EU member) states. The empirical research is based on panel cointegration analysis which utilises annual data on real output and broad (M2) as well as narrow (M1) monetary aggregates over the 1995–2013 period for 11 ex-socialist EU countries. The results suggest that the money neutrality proposition could be rejected in both cases when narrow or broad measure of money supply is applied, meaning that an active monetary policy could and should be used as a stabilisation instrument as well as in stimulating real economic activity.

  • Bae, S. K.Ratti, R. A. (2000): Long Run Neutrality, High Inflation and Bank Insolvencies in Argentina and Brazil. Journal of Monetary Economics, 46(3): 581604.

    • Search Google Scholar
    • Export Citation
  • Breitung, J. (2000): The Local Power of Some Unit Root Tests for Panel Data. In: Baltagi, D. (ed.): Nonstationary Panels, Panel Cointegration, and Dynamic Panels, Advances in Econometrics. Elsevier Science Inc., pp. 161178.

    • Search Google Scholar
    • Export Citation
  • Bullard, J. B. (1999): Testing Long-Run Monetary Neutrality Propositions: Lessons from the Recent Research. Federal Reserve Bank of St. Luis Review, 81(6): 5777.

    • Search Google Scholar
    • Export Citation
  • Chen, S. W. (2007): Evidence of the Long-Run Neutrality of Money: The Case of South Korea and Taiwan. Economics Bulletin, 3(64): 118.

    • Search Google Scholar
    • Export Citation
  • Choi, I. (2001): Unit Root Tests for Panel Data. Journal of International Money and Finance, 20(2): 249272.

  • Chuku, A. C. (2011): Testing Long-Run Neutrality Propositions in a Developing Economy: The Case of Nigeria. Journal of Economic Research, 16: 291308.

    • Search Google Scholar
    • Export Citation
  • Collignon, S. (2007): Long Run Effects of Short-Term Non-Neutrality of Money. Discussion Paper series (in preparation), Institut für Makroökonomie und Konjunkturforschung (IMK) in der Hans Böckler Stiftung, Berlin/Düsseldorf.

    • Search Google Scholar
    • Export Citation
  • ECB (2011): The Monetary Policy of the ECB. Frankfurt, Germany.

  • Ekomie, J-J. T. (2013): A Multivariate Long-Run Money Neutrality Investigation: Empirical Evidence for CAMEU. Modern Economy, 4(5): 384390.

    • Search Google Scholar
    • Export Citation
  • Engle, R. F.Granger, C. W. J. (1987): Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica, 55(2): 251276.

    • Search Google Scholar
    • Export Citation
  • Fisher, I. (1977): The Theory of Interest (1930). Porcupine Press: Philadelphia.

  • Fisher, M. E.Seater, J. J. (1993): Long-Run Neutrality and Superneutrality in an ARIMA Framework. American Economic Review, 83(3): 402415.

    • Search Google Scholar
    • Export Citation
  • Fisher, R. A. (1932): Statistical Methods for Research Workers. 4th Edition. Edinburgh: Oliver & Boyd

  • Friedman, M. (1698): The Role of Monetary Policy. American Economic Review, 68(1): 117.

  • Ganchev, G.Tsenkov, V.Stavrova, E. (2014): Exploring the Relationship between Credit and Nominal GDP. The European Money and Finance Forum. Available at: http://www.suerf.org/download/studies/study20144.pdf.

    • Search Google Scholar
    • Export Citation
  • Hadri, K. (2000): Testing for Stationarity in Heterogeneous Panel Data. Econometrics Journal, 3(2): 148161.

  • IHS Global Inc. (2015): EViews 9 User’s Guide. Irvine CA: USA.

  • Im, K. S.Pesaran, M. H.Shin, Y. (2003): Testing for Unit Roots in Heterogeneous Panels. Journal of Econometrics, 115(1): 5374.

    • Search Google Scholar
    • Export Citation
  • Johansen, S. (1991): Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models. Econometrica, 59(6): 15511580.

    • Search Google Scholar
    • Export Citation
  • Johansen, S. (1995): Likelihood-Based Inference in Cointegrated Vector Autoregressive Models. Oxford: Oxford University Press.

  • Kao, C. (1999): Spurious Regression and Residual-Based Tests for Cointegration in Panel Data. Journal of Econometrics, 90(1): 144.

  • Kao, C.Chiang, M. H. (2000): On the Estimation and Inference of a Cointegrated Regression in Panel Data. In: Baltagi, B. (ed.): Advances in Econometrics, 15: Nonstationary Panels, Panel Cointegration, and Dynamic Panels, Elsevier Science Inc., pp. 179222.

    • Search Google Scholar
    • Export Citation
  • Karanassou, M.Sala, H. (2010): The USInflation – Unemployment Tradeoff Revisited: New Evidence for Policy Making. Journal of Policy Modelling, 32(6): 758777.

    • Search Google Scholar
    • Export Citation
  • Keynes, J. M. (1936): The General Theory of Employment, Interest and Money. New York: Harcourt Brace.

  • King, R. G.Watson, M. W. (1997): Testing Long-Run Neutrality. Federal Reserve Bank of Richmond Economic Quarterly, 83(3): 69101.

    • Search Google Scholar
    • Export Citation
  • Levin, A.Lin, C.Chu, C. (2002): Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics, 108(1): 124.

    • Search Google Scholar
    • Export Citation
  • Lucas, R. E. (1972): Expectations and the Neutrality of Money. Journal of Economic Theory, 4(2): 103124.

  • Maddala, G. S.Wu, S. (1999): A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test. Oxford Bulletin of Economics and Statistics, 61(S1): 631652.

    • Search Google Scholar
    • Export Citation
  • Minsky, H. (1993): On the Non-Neutrality of Money. Federal Reserve Bank of New York Quarterly Review, 18(1): 7782.

  • Mises, L. von (1912): The Theory of Money and Credit, (1971) Irvington-on-Hudson: New York, Foundation for Economic Education.

  • Nelson, M. C.Sul, D. (1999): A Computationally Simple Cointegration Vector Estimator for Panel Data. Ohio State University manuscript.

    • Search Google Scholar
    • Export Citation
  • Nelson, M. C.Sul, D. (2003): Cointegration Vector Estimation by Panel DOLS and Long-Run Money Demand. Oxford Bulletin of Economics and Statistics, 65(5): 655680.

    • Search Google Scholar
    • Export Citation
  • Nogueira, R. P. (2007): Some Evidence on Long-Run Monetary Policy Neutrality in Brazil. Revista de Economia e Administração, 6(4): 438446.

    • Search Google Scholar
    • Export Citation
  • Nogueira, R. P. (2009): Is Monetary Policy Really Neutral in the Long-Run? Evidence for Some Emerging and Developed Economies. Economics Bulletin, 29(3): 24322437.

    • Search Google Scholar
    • Export Citation
  • Oi, H.Shiratsuka, S.Shirota, T. (2004): On Long-Run Monetary Neutrality in Japan. Monetary and Economic Studies, October 2004, Bank of Japan’s Institute for Monetary and Economic Studies.

    • Search Google Scholar
    • Export Citation
  • Osuji, C. C.Chigbu, E. E. (2013): Money Neutrality Controversy in a Developing Economy. Developing Country Studies, 3(1): 170175.

    • Search Google Scholar
    • Export Citation
  • Pedroni, P. (1999): Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors. Oxford Bulletin of Economics and Statistics, 61, Special Issue, pp. 653670.

    • Search Google Scholar
    • Export Citation
  • Pedroni, P. (2000): Fully Modified OLS for Heterogeneous Cointegrated Panels In: B. Baltagi (ed.): Advances in Econometrics, 15: Nonstationary Panels, Panel Cointegration, and Dynamic Panels, Elsevier Science Inc., pp. 93130.

    • Search Google Scholar
    • Export Citation
  • Pedroni, P. (2001): Purchasing Power Parity Tests in Cointegrated Panels. The Review of Economics and Statistics, 83(4): 727731.

  • Pedroni, P. (2004): Panel Cointegration; Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis. Econometric Theory, 20(3): 597625.

    • Search Google Scholar
    • Export Citation
  • Pesaran, M. H.Shin, Y.Smith, R. P. (1999): Pooled Mean Group Estimation of Dynamic Heterogeneous Panels. Journal of the American Statistical Association, 94(446): 621634.

    • Search Google Scholar
    • Export Citation
  • Phelps, E. S. (1968): Money – Wage Dynamics and Labour – Market Equilibrium. Journal of Political Economy, 76(4): 678711.

  • Phillips, P. C. B.Hansen, B. E. (1990): Statistical Inference in Instrumental Variables Regression with I(1) Processes. Review of Economics Studies, 57(1): 99125.

    • Search Google Scholar
    • Export Citation
  • Phillips, P. C. B.Moon, H. R. (1999): Linear Regression Limit Theory for Nonstationary Panel Data. Econometrica, 67(5): 10571111.

    • Search Google Scholar
    • Export Citation
  • Saikkonen, P. (1992): Estimation and Testing of Cointegrated Systems by an Autoregressive Approximation. Econometric Theory, 8(1): 127.

    • Search Google Scholar
    • Export Citation
  • Sargent, T.Wallace, N. (1973): The Stability of Models of Money and Growth with Perfect Foresight. Econometrica, 41(6): 10431048.

    • Search Google Scholar
    • Export Citation
  • Serletis, A.Koustas, Z. (1998): International Evidence on the Neutrality of Money. Journal of Money, Credit and Banking, 30(1): 125.

    • Search Google Scholar
    • Export Citation
  • Serletis, A.Krause, D. (1996): Empirical Evidence on the Long-Run Neutrality Hypothesis Using Low Frequency International Data. Economic Letters, 50(3): 323327.

    • Search Google Scholar
    • Export Citation
  • Stock, J. H.Watson, M. (1993): A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems. Econometrica, 61(4): 783820.

    • Search Google Scholar
    • Export Citation
  • Sulku, S. N. (2011): Testing the Long Run Neutrality of Money in a Developing Country: Evidence from Turkey. Journal of Applied Economics and Business Research, 1(2): 6574.

    • Search Google Scholar
    • Export Citation
  • Tomic, D.Kenjereš, M. (2015): New Insights in Business Cycle Coherence; Empirical Evidence from Slovenia. 34th International Conference on Organizational Science Development: Internationalization and Cooperation, pp. 11501161. Portorož, Slovenia, March 25–27.

    • Search Google Scholar
    • Export Citation
  • Vaona, A. (2015): Anomalous Empirical Evidence on Money Long-Run Superneutrality and the Vertical Long-Run Phillips Curve. Working paper No. 17, Working Paper Series from Department of Economics, University of Verona.

    • Search Google Scholar
    • Export Citation
  • Wallace, F. H. (1999): Long Run Neutrality of Money in the Mexican Economy. Applied Economics Letters, 6(10): 637639.

  • Weber, A. (1994): Testing Long-Run Neutrality: Empirical Evidence for G7 Countries with Special Emphasis on Germany. Carnegie-Rochester Conference Series on Public Policy, pp. 67117.

    • Search Google Scholar
    • Export Citation
  • Westerlund, J.Constantini, M. (2009): Panel Cointegration and the Neutrality of Money. Empirical Economics, 36(1): 126.

Submit Your Manuscript
 
The author instruction is available in PDF.
Please, download the file from HERE.

 

The description of the refereeing procedure is available in PDF.
Please, download the file from HERE.

 

 

Senior editors

Editor(s)-in-Chief: Prof. Dr. Mihályi, Péter

Editor(s): Ványai, Judit

Editorial Board

  • Ádám Török (Chairman) / University of Pannonia; Budapest University of Technology and Economics
  • Edina Berlinger / Corvinus University of Budapest, Department of Finance
  • Péter Halmai / Budapest University of Technology and Economics; National University of Public Service
  • István Kónya / Institute of Economics Centre for Regional and Economic Studies, University of Pécs
  • János Köllő / Institute of Economics Centre for Regional and Economic Studies
  • István Magas / Corvinus University of Budapest, Department of World Economy; University of Physical Education, Department. of Sports and Decision Sciences
 

Advisory Board

  • Ǻslund, Anders, Institute of International Economics, Washington (USA)
  • Kolodko, Grzegorz, Kozminski University, Warsaw (Poland)
  • Mau, Vladimir, Academy of National Economy (Russia)
  • Messerlin, Patrick A, Groupe d’Economie Mondiale (France)
  • Saul Estrin, London School of Economics (UK)
  • Wagener, Hans-Jürgen, Europa Universität Viadrina (Germany)

Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary

Indexing and Abstracting Services:

  • EconLit
  • Elsevier GEO Abstracts
  • GEOBASE
  • International Bibliographies IBZ and IBR
  • JEL
  • Referativnyi Zhurnal
  • RePEc
  • SCOPUS
  • Social Science Citation Index
  • Index Copernicus

 

2020  
Total Cites 275
WoS
Journal
Impact Factor
0,875
Rank by Economics 325/377 (Q4)
Impact Factor  
Impact Factor 0,534
without
Journal Self Cites
5 Year 0,500
Impact Factor
Journal  0,38
Citation Indicator  
Rank by Journal  Economics 347/549 (Q3)
Citation Indicator   
Citable 37
Items
Total 37
Articles
Total 0
Reviews
Scimago 13
H-index
Scimago 0,292
Journal Rank
Scimago Economics and Econometrics Q3
Quartile Score  
Scopus 225/166=1,4
Scite Score  
Scopus Economics and Econometrics 392/661 (Q3)
Scite Score Rank  
Scopus 0,668
SNIP  
Days from  289
sumbission  
to acceptance  
Days from  447
acceptance  
to publication  

2019  
Total Cites
WoS
212
Impact Factor 0,914
Impact Factor
without
Journal Self Cites
0,728
5 Year
Impact Factor
0,650
Immediacy
Index
0,156
Citable
Items
45
Total
Articles
45
Total
Reviews
0
Cited
Half-Life
3,9
Citing
Half-Life
9,5
Eigenfactor
Score
0,00015
Article Influence
Score
0,052
% Articles
in
Citable Items
100,00
Normalized
Eigenfactor
0,01891
Average
IF
Percentile
28,437
Scimago
H-index
12
Scimago
Journal Rank
0,439
Scopus
Scite Score
214/165=1,3
Scopus
Scite Score Rank
Economics and Econometrics 355/637 (Q3)
Scopus
SNIP
0,989

 

Acta Oeconomica
Publication Model Hybrid
Submission Fee none
Article Processing Charge 900 EUR/article
Printed Color Illustrations 40 EUR (or 10 000 HUF) + VAT / piece
Regional discounts on country of the funding agency World Bank Lower-middle-income economies: 50%
World Bank Low-income economies: 100%
Further Discounts Editorial Board / Advisory Board members: 50%
Corresponding authors, affiliated to an EISZ member institution subscribing to the journal package of Akadémiai Kiadó: 100%
Subscription fee 2021 Online subsscription: 588 EUR / 732 USD
Print + online subscription: 688 EUR / 860 USD
Subscription fee 2022 Online subsscription: 600 EUR / 750 USD
Print + online subscription: 704 EUR / 880 USD
Subscription Information Online subscribers are entitled access to all back issues published by Akadémiai Kiadó for each title for the duration of the subscription, as well as Online First content for the subscribed content.
Purchase per Title Individual articles are sold on the displayed price.

Acta Oeconomica
Language English
Size B5
Year of
Foundation
1966
Publication
Programme
2021 Volume 71
Volumes
per Year
1
Issues
per Year
4
Founder Magyar Tudományos Akadémia
Founder's
Address
H-1051 Budapest, Hungary, Széchenyi István tér 9.
Publisher Akadémiai Kiadó
Publisher's
Address
H-1117 Budapest, Hungary 1516 Budapest, PO Box 245.
Responsible
Publisher
Chief Executive Officer, Akadémiai Kiadó
ISSN 0001-6373 (Print)
ISSN 1588-2659 (Online)