The causal direction between money and prices. An alternative approach
Abstract
Causality is viewed as a matter of control. Controllability is captured in Simon's
analysis of causality as an asymmetrical relation of recursion between variables in
the unobservable data-generating process. Tests of the stability of marginal and conditional
distributions for these variables can provide evidence of causal ordering. The causal
direction between prices and money in the United States 1950-1985 is assessed. The
balance of evidence supports the view that money does not cause prices, and that prices
do cause money. © 1991.
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Journal articlePermalink
https://hdl.handle.net/10161/1974Published Version (Please cite this version)
10.1016/0304-3932(91)90015-GPublication Info
Hoover, KD (1991). The causal direction between money and prices. An alternative approach. Journal of Monetary Economics, 27(3). pp. 381-423. 10.1016/0304-3932(91)90015-G. Retrieved from https://hdl.handle.net/10161/1974.This is constructed from limited available data and may be imprecise. To cite this
article, please review & use the official citation provided by the journal.
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Show full item recordScholars@Duke
Kevin Douglas Hoover
Professor of Economics
Professor Hoover's research interests include macroeconomics, monetary economics,
the history of economics, and the philosophy and methodology of empirical economics.
His recent work in economics has focused on the application of causal search methodologies
for structural vector autoregression, the history of microfoundational programs in
macroeconomics, and Roy Harrod's early work on dynamic macroeconomics. In philosophy,
he has concentrated on issues related to causality, especially in economi

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