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Title: |
Unanticipated Money, Output, Employment and Prices in a Developing
Economy: The Korean Case |
| Author: |
Lee, Young
Geol; Zilberfarb, Ben-Zion |
| Author
Affiliation: |
Economic Planning Board; Bar-Ilan U |
| Source: |
International Economic Journal, Summer 1993, v. 7, no. 2, pp. 15-25 |
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Publication Date: |
Summer 1993 |
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Abstract: |
This paper examines the effect of
unanticipated money on output, unemployment, and prices in Korea. The
empirical results tend to reject the policy ineffectiveness proposition
(PIP) in most cases. They show that both anticipated and unanticipated
money affect output and prices, in contrast with the PIP. Mixed results
are obtained for the effect of monetary variables on unemployment. The
statistical results show that the regular OLS two step estimates yield
"t" values which are upward biased by 0-27 percent as compared with the
consistent estimates of the variance-covariance matrix that are obtained
in this study. |
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