Menu Expand

Cite JOURNAL ARTICLE

Style

Gupta, S. Causal Relationship between Domestic Credit and International Reserves: The Experience of Developing Countries. Credit and Capital Markets – Kredit und Kapital, 17(2), 261-271. https://doi.org/10.3790/ccm.17.2.261
Gupta, Sanjeev "Causal Relationship between Domestic Credit and International Reserves: The Experience of Developing Countries" Credit and Capital Markets – Kredit und Kapital 17.2, 1984, 261-271. https://doi.org/10.3790/ccm.17.2.261
Gupta, Sanjeev (1984): Causal Relationship between Domestic Credit and International Reserves: The Experience of Developing Countries, in: Credit and Capital Markets – Kredit und Kapital, vol. 17, iss. 2, 261-271, [online] https://doi.org/10.3790/ccm.17.2.261

Format

Causal Relationship between Domestic Credit and International Reserves: The Experience of Developing Countries

Gupta, Sanjeev

Credit and Capital Markets – Kredit und Kapital, Vol. 17 (1984), Iss. 2 : pp. 261–271

Additional Information

Article Details

Gupta, Sanjeev

References

  1. Aghevli, Bijan B. and Khan, Mohsin S.: “The Monetary Approach to Balance of Payments Determination: An Empirical Test”, in: The Monetary Approach to the Balance of Payments, Washington, D.C.: International Monetary Fund, 1977.  Google Scholar
  2. Blejer, Mario I.: “On Causality and the Monetary Approach to the Balance of Payments”. European Economic Review 12 (July 1979), 289 - 96.  Google Scholar
  3. Box, G.E. P. and Jenkins, G.M.: Time Series Analysis, Forecasting and Control. San Francisco, Holden-Day, 1970.  Google Scholar
  4. Crockett, Andrew D.: “Stabilization Policies in Developing Countries: Some Policy Considerations”. IMF Staff Papers 28 (March 1981), 54 - 79.  Google Scholar
  5. Feige, Edgar L. and Pearce, Douglas K.: “The Causal Relationship between Money and Income: Some Caveats for Time Series Analysis”. The Review of Economics and Statistics 61 (November 1979), 521 - 33.  Google Scholar
  6. Feige, Edgar L. and Johannes, James M.: “Testing the Causal Relationship between the Domestic Credit and Reserve Components of a Country’s Monetary Base”. Journal of Macroeconomics 3 (Winter .1981), 55 - 76.  Google Scholar
  7. Frenkel, Jacob A. and Johnson, Harry G., eds.: The Monetary Approach to the Balance of Payments. Toronto, University of Toronto Press, 1976.  Google Scholar
  8. Granger, C. W. J.: “Investigating Causal Relations by Econometric Models and Cross Spectral Methods”. Econometrica 37 (July 1969), 428- 38.  Google Scholar
  9. Grubel, Herbert G. and Ryan, T. C. 1.: “A Monetary Model of Kenya’s Balance of Payments”. Department of Economics and Commerce, Discussion Paper Series, Simon Fraser University. No. 79-09-3.  Google Scholar
  10. Haugh, L. D.: “Checking the Independence of Two Covariance Stationary Time Series: A Univariate Residual Cross-Correlation Approach”. Journal of the American Statistical Association 71 (June 1976), 378 - 85.  Google Scholar
  11. IMF-Institute: Financial Policy Workshops: The Case of Kenya. Washington, D. C.: International Monetary Fund, 1981.  Google Scholar
  12. Kreinin, Mordechai E. and Officer, Lawrence H.: “The Monetary Approach to the Balance of Payments: A Survey Article” Princeton Special Studies in International Finance, No. 43 (1978).  Google Scholar
  13. Pierce, D. A. and Haugh, L. D.: “Causality in Temporal Systems: Characterizations and a Survey”. Journal of Econometrics 5 (May, 1977), 265 - 93.  Google Scholar
  14. Rhomberg, Rudolf R. and Heller, H. Robert: “Introductory Survey”. In the Monetary Approach to the Balance of Payments. Washington, D.C., International Monetary Fund, 1977.  Google Scholar
  15. Sims, Christopher A.: “Money, Income and Causality”. American Economic Review 62 (September 1972): 540 - 52.  Google Scholar
  16. Sims, Christopher A.: “Distributed Lags”. In Frontiers of Quantitative Economics. M. D. Intriligator and D. A. Kendrick, eds., Vol. 2, Amsterdam, North-Holland, 1974.  Google Scholar

Abstract

Causal Relationship between Domestic Credit and International Reserves: The Experience of Developing Countries

Three causality tests, Haugh, Granger and Sims are used to determine the nature of causal relationship between the components of monetary base of India, Malaysia, Mexico and Taiwan. The conclusion derived is that bidirectional causality exists between the changes in domestic credit and changes in international reserves for all four countries.