DEFICITS, POLITICS AND MONEY GROWTH

KEVIN B. GRIER; HOWARD E. NEIMAN

doi:10.1111/j.1465-7295.1987.tb00735.x

DEFICITS, POLITICS AND MONEY GROWTH

KEVIN B. GRIER, HOWARD E. NEIMAN

Free Market Institute

Research output: Contribution to journal › Article › peer-review

35 Scopus citations

Abstract

We examine the linkage between Federal deficits and money growth by allowing the Fed's response to any given deficit to vary systematically according to how the deficit is generated and the Party affiliation of the current president. In equations for Ml and monetary base growth, the structural deficit is consistently significant and invariant across political changes, while the cyclical component of the deficit (or a direct measure of the business cycle) is significant only during the tenure of Democratic presidents.

Original language	English
Pages (from-to)	201-214
Number of pages	14
Journal	Economic Inquiry
Volume	25
Issue number	2
DOIs	https://doi.org/10.1111/j.1465-7295.1987.tb00735.x
State	Published - Apr 1987

Access to Document

10.1111/j.1465-7295.1987.tb00735.x

Cite this

@article{efc572a4c5a845e7922ba605a7d12445,

title = "DEFICITS, POLITICS AND MONEY GROWTH",

abstract = "We examine the linkage between Federal deficits and money growth by allowing the Fed's response to any given deficit to vary systematically according to how the deficit is generated and the Party affiliation of the current president. In equations for Ml and monetary base growth, the structural deficit is consistently significant and invariant across political changes, while the cyclical component of the deficit (or a direct measure of the business cycle) is significant only during the tenure of Democratic presidents.",

author = "GRIER, {KEVIN B.} and NEIMAN, {HOWARD E.}",

year = "1987",

month = apr,

doi = "10.1111/j.1465-7295.1987.tb00735.x",

language = "English",

volume = "25",

pages = "201--214",

journal = "Economic Inquiry",

issn = "0095-2583",

number = "2",

}

TY - JOUR

T1 - DEFICITS, POLITICS AND MONEY GROWTH

AU - GRIER, KEVIN B.

AU - NEIMAN, HOWARD E.

PY - 1987/4

Y1 - 1987/4

N2 - We examine the linkage between Federal deficits and money growth by allowing the Fed's response to any given deficit to vary systematically according to how the deficit is generated and the Party affiliation of the current president. In equations for Ml and monetary base growth, the structural deficit is consistently significant and invariant across political changes, while the cyclical component of the deficit (or a direct measure of the business cycle) is significant only during the tenure of Democratic presidents.

AB - We examine the linkage between Federal deficits and money growth by allowing the Fed's response to any given deficit to vary systematically according to how the deficit is generated and the Party affiliation of the current president. In equations for Ml and monetary base growth, the structural deficit is consistently significant and invariant across political changes, while the cyclical component of the deficit (or a direct measure of the business cycle) is significant only during the tenure of Democratic presidents.

UR - http://www.scopus.com/inward/record.url?scp=84977318699&partnerID=8YFLogxK

U2 - 10.1111/j.1465-7295.1987.tb00735.x

DO - 10.1111/j.1465-7295.1987.tb00735.x

M3 - Article

AN - SCOPUS:84977318699

SN - 0095-2583

VL - 25

SP - 201

EP - 214

JO - Economic Inquiry

JF - Economic Inquiry

IS - 2

ER -

DEFICITS, POLITICS AND MONEY GROWTH

Abstract

Access to Document

Other files and links

Fingerprint

Cite this