Money, inflation, and output under fiat and commodity standards

Arthur J Rolnick, Warren E. Weber

Research output: Contribution to journalArticle

35 Citations (Scopus)

Abstract

We examine the behavior of money, inflation, and output under fiat and commodity standards to better understand how changes in monetary policy affect economic activity. Using long-term historical data for 15 countries, we find that, under fiat standards, the growth rates of various monetary aggregates are more highly correlated with inflation and with each other than under commodity standards. Money growth, inflation, and output growth are also higher. In contrast, we do not find that money growth is more highly correlated with output growth under one standard than under the other.

Original languageEnglish (US)
Pages (from-to)1308-1321
Number of pages14
JournalJournal of Political Economy
Volume105
Issue number6
DOIs
StatePublished - Jan 1 1997

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Commodities
Inflation
Money growth
Output growth
Economic activity
Monetary aggregates
Monetary policy

Cite this

Money, inflation, and output under fiat and commodity standards. / Rolnick, Arthur J; Weber, Warren E.

In: Journal of Political Economy, Vol. 105, No. 6, 01.01.1997, p. 1308-1321.

Research output: Contribution to journalArticle

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