Causality relationship between money, income, price and exchange rates in a small open economy: The case of Hong Kong

HON Tai Yuen, Kurt

doi:10.1453/jel.v2i4.530

Causality relationship between money, income, price and exchange rates in a small open economy: The case of Hong Kong

Author(s)

HON Tai Yuen, Kurt

Date Issued

2015

Journal

Journal of Economics Library

ISSN

2149-2379

Citation

Journal of Economics Library, Dec 2015, vol. 2 (4), pp. 350-363

DOI

10.1453/jel.v2i4.530

URI

http://hdl.handle.net/20.500.11861/3809

Type

Peer Reviewed Journal Article

Abstract

This paper investigates the direction of causation among income, price, exchange rates and money supply in Hong Kong. We use the Granger(1969, 1980) causality concept to find the existence of such a relationship. The paper presents the results of two separate bivariate analyses: on involving money and income, and the other involving money and exchange rates. A notable result to come out of the paper is that there is no causality relationship between them.

Subjects

Exchange rates

File(s)

Name

JEL2015v2n4.pdf

Size

515.21 KB

Format

Adobe PDF

Checksum

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Causality relationship between money, income, price and exchange rates in a small open economy: The case of Hong Kong

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