Monetary growth effects on the US economy

Abstract

This paper has been motivated by recent work of Treadway et al.(1986) about monetary growth effects on the spanish economy. Treadway et al. proposed a theoretical framework to deal with monetary phenomena. We employ this theoretical framework to elaborate, with yearly data (1953-1983), a simple model for the U.S. economy, and study the monetary growth effects on this economy. We study Monetary Neutrality, Monetary Superneutrality, and Lack of Monetary Effects. The organization of this paper is as follows: Section I states the above hypothesis. Section II describes the theoretical framework. Section III is dedicated to the estimation process results. Finally Section IV summarizes the main conclusions.