This note examines interest rate linkages within the EMS. Cointegration tests suggest the existence of a long-run equilibrium relationship between German and other EMS interest rates. Bivariate VAR analysis finds that Granger-causality either stems from German to other European interest rates...

This paper investigates, using cointegration and Granger-causality techniques, whether a stable long-run co-movement exists between world commodity prices and U.K. retail prices, and whether short-run changes in commodity prices convey information about future movements in U.K. retail prices....

This paper reviews the theoretical and empirical literature on the effects of taxation on economic performance, adds marginally to the empirical literature, and draws conclusions for tax policy in OECD countries. Key issues covered are how, in open OECD economies, taxes may have affected...

This paper examines the long-run money-inflation relation for 36 African countries using cross-section and panel data analysis. The focus is on the recent claim by De Grauwe and Polan that the common finding in multi-country studies of a strong positive link typically reflects the presence of...

This note, employing a GARCH model, finds a positive and significant relationship between the level and variability of inflation in South Africa in the period 1957:1-2005:9. This provides evidence in support of Friedman's hypothesis that high inflation leads to more variable inflation. Copyright...

Several studies have emphasized the need to 'filter' the money growth and inflation data before a clear short-run intertemporal relation between them is revealed. When a simple filtering technique is employed to changes in money and prices, the correlation of the series tends to increase as the...

This paper examines the cyclicality of government revenue, spending and the key fiscal balances in South Africa during 1972-2001. The results suggest that while government revenues were largely acyclical, government spending appears to have been predominantly counter-cyclical, in line with the...