TY  - JOUR
AU  - Boschen,John F.
AU  - Grossman,Herschel I.
TI  - Tests of Equilibrium Macroeconomics Using Contemporaneous Monetary Data
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 558
PY  - 1983
Y2  - 1983
UR  - http://www.nber.org/papers/w0558
L1  - http://www.nber.org/papers/w0558.pdf
N1  - Author contact info:
John Boschen
E-Mail: john.boschen@business.wm.edu

Herschel Grossman
Department of Economics
Box B
Brown University
Providence, RI  02912
Tel: 401/863-2606
Fax: 401/863-1970
AB  - This paper uses contemporaneous monetary data to carry out econometric tests of the "equilibrium" approach to modeling the relation between monetary disturbances and macroeconomic fluctuations. The theoretical analysis introduces into an equilibrium macroeconomic model the availability of preliminary data on current monetary aggregates and the process of accumulation of revised monetary data. The econometric analysis tests two hypotheses derived from this extended model. One hypothesis concerns the neutrality of perceived monetary policy. The other hypothesis concerns the nonneutrality of errors in preliminary monetary data. The econometric results imply rejection of both of these hypotheses. These tests provide strong evidence against the reality of the equilibrium approach.
ER  -