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Causality relationship between money, income, price, and exchange rates in a small open economy
Date Issued
2025
Publisher
Scientific and Business World
Citation
In Yeung, W. M., Woo, K. Y., Tang, C. H., Lau, H. M., Tsang, C. K., Li, S. K., Hon, T. Y., Au, W. K., & Wong, W. K. (Eds.). (2025). Causality and behavioral finance studies (pp. 1-23). Scientific and Business World.
Type
Book Chapter
Abstract
We extend Hon’s (2015) paper to investigate the direction of causation among income,
price, exchange rates and money supply in Hong Kong. We use the Granger causality
concept to find the existence of such a relationship. The chapter presents the results of
two separate bivariate analyses: one involving money and income, and the other
involving money and exchange rates. A notable result to come out of the chapter is that
there is no causality relationship between them.
Availability at HKSYU Library
