Fractional monetary dynamics

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15 Scopus citations

Abstract

We test for fractional dynamics in US monetary series, their various formulations and components, and velocity series. Using the spectral regression method, we find evidence of a fractional exponent in the differencing process of the monetary series (both simple-sum and Divisia indices), in their components (with the exception of demand deposits, savings deposits, overnigth repurchase agreements, and term repurchase agreements), and the monetary base and money multipliers. No evidence of fractional behaviour is found in the velocity series. Granger's (Journal of Econometrics, 25, 1980) aggregation hypothesis is evaluated and implications of the presence of fractional monetary dynamics are drawn.

Original languageEnglish
Pages (from-to)1393-1400
Number of pages8
JournalApplied Economics
Volume31
Issue number11
DOIs
StatePublished - Nov 1999

Scopus Subject Areas

  • Economics and Econometrics

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