Government Borrowing and Monetary Accommodations

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Stuart D. Allen, Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: This paper re-examines the relationship between Treasury borrowing and monetary growth examined previously with annual data by Barro, Niskanen and Hamburger and Zwick. Our analysis, based on quarterly data, produces evidence of a positive and significant impact of total Treasury borrowing upon the growth of the monetary base for the 1954/I-1961/II and 1961/III-1974/IV periods but an insignificant coefficient for the Barro expenditure variable. When the coefficient instability during the 1961/III-1980/IV period is corrected by a dummy variable technique thy debt coefficient is positive and significant and remains stable for this two decade period.

Additional Information

Publication
Journal of Monetary Economics, 12(4) October 1983, 605-616.
Language: English
Date: 1983
Keywords
Government, Debt, Finance, Economics, Money