An aggregate monetary model of the world economy

M. Beenstock*, G. R. Dicks

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

A model of world output and inflation is developed from the Quantity Theory of Money cast in global terms. It includes a market for commodities and an exogenous oil price. The properties of the model, which are presented in terms of its tracking performance over the period 1970-1979 and in terms of shocks to the money supply and to the oil price, corroborate the Quantity Theory approach in the sense that in the long run the price level reflects the quantity of money while output is determined by real phenomena.

Original languageEnglish
Pages (from-to)261-285
Number of pages25
JournalEuropean Economic Review
Volume21
Issue number3
DOIs
StatePublished - May 1983
Externally publishedYes

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