The impact of money on output in Czech Republic and Romania

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F18%3A63518986" target="_blank" >RIV/70883521:28120/18:63518986 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.3846/jbem.2018.1480" target="_blank" >http://dx.doi.org/10.3846/jbem.2018.1480</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3846/jbem.2018.1480" target="_blank" >10.3846/jbem.2018.1480</a>

Result language

angličtina

Original language name

The impact of money on output in Czech Republic and Romania

Original language description

The problem of relationship between output and money has become again a subject of special interests of economists after the most recent global financial crisis and monetary stabilization policies applied by central banks of almost all developed economies. In this context, the main aim of this paper is to assess the relation between GDP and the most important monetary variables in two countries: Romania and Czech Republic over the period of 1995:Q1 - 2015:Q4. The choice of these economies was deliberate. The selected countries are different from the viewpoint of rate and results of transformation from the centrally planned to market economy, which have influenced their current economic environment stability. Czech Republic is currently classified as middle or even developed country, whereas Romania is still considered as a developing economy. Thus, differences between these two countries make them interesting in the case of comparative studies. In the empirical part of our research the vector error correction models (VECM) were applied. The main findings of the article are the following: in Romania, there is a short-run causality from money supply (M3) to GDP and a long-run relationship between GDP, internal credit and M3. According to Granger causality test, the rate of M3 in Romania was a cause for economic. In Czech Republic, there is a short-run causality from M3 to GDP and a long-run causality between GDP, internal credit and M3. Thus, the results contradict the money neutrality hypothesis in post-transformation Central European economies.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Business Economics and Management

ISSN

1611-1699

e-ISSN

—

Volume of the periodical

19

Issue of the periodical within the volume

1

Country of publishing house

LT - LITHUANIA

Number of pages

22

Pages from-to

20-41

UT code for WoS article

000440620100002

EID of the result in the Scopus database

2-s2.0-85047065923