Money and Economic Activity: Some International Evidence

This study examines the long-run responses of economic activity to changes in monetary conditions in open economies. The empirical results of the study, based on monthly data from Australia, Germany, the Netherlands and the United States provide suport for a positive and significant effect of money on economic activity in the long-run. This long-run relationship generally did not weaken when the smaple period included only the decades of the 1980s and the early part of the 1990s.