In this paper we empirically examine the effects of government debt on interest rate, price, output and capital formation in the USA during the post-war period. Using cointegration methodology supplemented with variance decompositions and impulse response functions, the study found a long-run...

This paper validates the monetary model in the determination of the dollar-yen exchange rate by applying cointegration methodology. Estimation results indicate a stationary relationship between the dollar-yen exchange rate and monetary models, with long-term causality flowing from monetary...