Spectral analysis: money, income and price, 1962-1987

Abstract

In this study, the influence of monetary policy upon the price level and the real income over the business cycle is analyzed. The cross-spectral analysis, which is utilised in this study, minimises the effects of differential goverment policies. The observation period is from 1962 to 1987. The findings of the study show that the monetary policy has a significant influence upon the price level and so on the inflation as well.