Revista Economía Vol. 45 No. 89

Using100+years of data from 18 developed countries, we use a frequency domain technique tocompute “long-run” correlations between inflation on the one hand and money growth and nominalinterest rates on the other. The estimated long-run correlations are almost always positive. Theirmagnitude is relatively substantial for money growth, more modest for interest rates. We concludethat some traditional propositions about monetary neutrality are broadly consistent with the data

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