Hostname: page-component-7bb8b95d7b-495rp Total loading time: 0 Render date: 2024-09-12T17:12:24.614Z Has data issue: false hasContentIssue false
  • English
  • Français

The Channels of Monetary Influence: a Survey of the Empirical Evidence

Published online by Cambridge University Press:  26 March 2020

David Savage
David Savage*
Affiliation:
National Institute of Economic and Social Research
Get access Rights & Permissions [Opens in a new window]

Abstract

Over the years a large number of empirical studies have investigated the effects of monetary factors on various forms of private expenditure. This article surveys the evidence which has accumulated with a view to throwing some light on the basic issue of how, and how strongly, monetary policies influence real economic activity in this country. The evidence is varied and often contradictory and only tentative conclusions can be drawn.

Type
Articles
Information
National Institute Economic Review , Volume 83 , February 1978 , pp. 73 - 89
Copyright
Copyright © 1978 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Artis, M., ‘Monetary policy’, in Blackaby, F. T. (ed) ‘British Economic Policy, 1960-74’, Cambridge University Press (forthcoming).CrossRefGoogle Scholar
Dow, J.C.R., ‘The Management of the British Economy’, Cambridge University Press, 1964.Google Scholar
Fisher, G. and Shephard, D., ‘Effects of Monetary Policy on the United States Economy: A Survey of Econometric Evidence’, OECD Economic Outlook, Occasional Studies, December 1972.Google Scholar
Anderson, W.H.L., ‘Business fixed investment: a marriage of fact and fancy’, in Ferber (1967).Google Scholar
Bischoff, C.W., ‘Hypothesis testing and the demand for capital goods', Review of Economics and Statistics, 51, 1969.CrossRefGoogle Scholar
Bischoff, C.W., ‘The effect of alternative lag distributions’, in Fromm (1971).Google Scholar
Boatwright, B.D. and Eaton, J.R., ‘The estimation of investment functions for UK manufacturing industry’, Economica, November 1972.CrossRefGoogle Scholar
Coen, R.M., ‘The effect of cash flow on the speed of adjustment’, in Fromm (1971).Google Scholar
De Leeuw, F., ‘The demand for capital goods by manufacturers: a study in quarterly time series’, Econometrica, 30, 1962.CrossRefGoogle Scholar
Eisner, R., ‘Interview and other survey techniques and the study of investment’, in NBER, ‘Studies in income and wealth’, Vol. 19, ‘Problems of capital formation’, Princeton University Press, 1957.Google Scholar
Eisner, R. and Nadiri, M.I., ‘Investment behaviour and the neo-classical theory’, Review of Economics and Statistics, 50, 1968.CrossRefGoogle Scholar
Eisner, R. and Strotz, R.H., ‘Determinants of business investment’, in ’Commission on money and credit, impacts of monetary policy’, Prentice-Hall, 1963.Google Scholar
Evans, M.K., ‘A study of industry investment decisions’, Review of Economics and Statistics, 49, 1967.CrossRefGoogle Scholar
Evans, M.K., ‘Macroeconomic activity: theory, forecasting, and control’, Harper and Row, 1969.Google Scholar
Feldstein, M.S. and Flemming, J.S., ‘Tax policy, corporate saving and investment behaviour in Britain’, Review of Economic Studies, 38, 1971.CrossRefGoogle Scholar
Ferber, R., (ed) ‘The determinants of investment behaviour’, NBER, 1967.Google Scholar
Fromm, L., (ed) ‘Tax incentives and capital spending’, Brookings Institution, 1971.Google Scholar
Gehrels, F. and Wiggins, S., ‘Interest rates and manufacturers' fixed investments’, American Economic Review, 47, 1957.Google Scholar
Griliches, Z. and Wallace, N., ‘The determinants of investment revisited’, International Economic Review, 6, 1965.Google Scholar
Grunfeld, Y., ‘The determinants of corporate investment’, in Harberger, A. C., (ed), ‘The demand for durable goods’, University of Chicago Press, 1960.Google Scholar
Hines, A.G. and Catephores, G., ‘Investment in UK manufacturing industry’, in ‘The econometric study of the United Kingdom’ edited by Hilton, K., and Heathfield, D. F., Macmillan, 1970.Google Scholar
Jorgenson, D.W., ‘Anticipations and investment behaviour’, in Duesenberry, J. S., Fromm, G., Klein, L. R., and Kuh, E., (eds), ‘The Brookings Quarterly Model of the United States’, North-Holland, 1965.Google Scholar
Jorgenson, D.W., ‘Econometric studies of investment behaviour: a survey’, Journal of Economic Literature, 9, 1971.Google Scholar
Klein, L.R., ‘Studies in investment behaviour’, in ‘Conference on business cycles’, NBER, 1951.Google Scholar
Klein, L.R., ‘Issues in econometric studies of investment behaviour’, Journal of Economic Literature, XII, 1974.Google Scholar
Klein, L.R., Ball, R.J., Hazelwood, A., and Vandome, P., ‘An econometric model of the United Kingdom’, BasilBlackwell, 1961.Google Scholar
Klein, L.R. and Taubman, P., ‘Estimating effects within a complete econometric model’, in Fromm (1971).Google Scholar
Koyck, L.M., ‘Distributed lags and investment analysis’, North-Holland, 1954.Google Scholar
Lund, P.J., ‘Investment: the study of an economic aggregate’, Oliver and Boyd, 1971.Google Scholar
Lund, P.J. and Holden, K., ‘An econometric study of private sector gross fixed capital formation in the United Kingdom, 1923-38’, Oxford Economic Papers, 10, 1968.CrossRefGoogle Scholar
Nobay, A.R., ‘Forecasting manufacturing investment-some preliminary results’, National Institute Economic Review, May 1970.CrossRefGoogle Scholar
Oxford Economists Research Group, ‘Summary of replies to questions on effects of interest rates’, Oxford Economic Papers, 1, 1938.CrossRefGoogle Scholar
Resek, R.W., ‘Investment by manufacturing firms: a quarterly time series analysis of industry data’, Review of Economics and Statistics, 48, 1966.CrossRefGoogle Scholar
White, W.H., ‘Interest inelasticity of investment demand-the case from business attitude surveys re-examined’, American Economic Review, 46, 1956.Google Scholar
White, W.H., ‘The rate of interest, the marginal efficiency of capital, and investment programming’, Economic Journal, 68, 1958.Google Scholar
Allard, R.J., ‘An economic analysis of the effects of regulating hire purchase’, Government Economic Service Occasional Paper No. 9, HMSO, 1974.Google Scholar
Ando, A. and Modigliani, F., ‘The life cycle hypothesis of saving: aggregate implications and tests’, American Economic Review, 53, 1963.Google Scholar
Arena, J.J., ‘Postwar stock market changes and consumer spending’, Review of Economics and Statistics, 47, 1965.CrossRefGoogle Scholar
Ball, R.J. and Drake, P.S., ‘The impact of credit control on consumer spending in the United Kingdom’, Review of Economic Studies, 30, 1963.Google Scholar
Bank Of England, ‘The personal savings ratio’, Bank of England Quarterly Bulletin, March 1975.Google Scholar
Bhatia, K.B., ‘Capital gains and the aggregate consumption function’, American Economic Review, 62, 1972.Google Scholar
Evans, M.K., ‘The importance of wealth in the consumption function’, Journal of Political Economy, 75, 1967.CrossRefGoogle Scholar
Ferber, R., ‘Research on household behaviour’, American Economic Review, 52, 1962.Google Scholar
Ferber, R., ‘Consumer economics, a survey’, Journal of Economic Literature, 11, 1973.Google Scholar
Garganas, N.C., ‘An analysis of consumer credit and its effect on purchases of consumer durables’, in Renton, G. A. (ed), ‘Modelling the economy’, Heinemann, 1972.Google Scholar
Griliches, Z., Maddala, G.S., Lucas, R. and Wallace, N., ‘Notes on estimated quarterly aggregate consumption functions’, Econometrica, 30, 1962.CrossRefGoogle Scholar
Hamburger, M.J., ‘Interest rates and the demand for consumer durable goods’, American Economic Review, 57, 1967.Google Scholar
Hilton, K. and Crossfield, D.H., ‘Short-run consumption functions for the UK, 1955-56’, in Hilton, K. and Heathfield, D. F. (eds), ‘The econometric study of the United Kingdom’, Macmillan, 1970.Google Scholar
Klein, L.R. and Goldberger, A.S., ‘An econometric model of the United States, 1929-55’, North-Holland, 1955.Google Scholar
Landsberger, M., ‘The life cycle hypothesis-a reinterpretation and empirical test’, American Economic Review, 60, 1970.Google Scholar
Leff, N.H., ‘Dependency rates and savings rates’, American Economic Review, 59, 1969.Google Scholar
Modigliani, F., ‘The life cycle hypothesis of saving and inter-country differences in the saving ratio’, in ’Induction, growth and trade’, Essays in honour of Sir Roy Harrod, Clarendon Press, 1970.Google Scholar
Modigliani, F., ‘Monetary policy and consumption’, in ’Consumer spending and monetary policy: the linkages’, Federal Reserve Bank of Boston, 1971.Google Scholar
Stone, R., ‘Private savings in Britain, past, present and future’, Manchester School, 32, 1964.CrossRefGoogle Scholar
Surrey, M.J.C., ‘Personal income and consumers' expenditure’, in Hilton, K. and Heathfield, D. F. (eds), ‘The econometric study of the United Kingdom’, Macmillan, 1970.Google Scholar
Tinbergen, J., ‘Statistical testing of business cycle theories’, League of Nations, Geneva, 1939.Google Scholar
Zellner, A., ‘The short-run consumption function’, Econometrica, 25, 1957.CrossRefGoogle Scholar
Zellner, A., Huang, D.S., and Chan, L.C., ‘Further analysis of the short-run consumption function with emphasis on the role of liquid assets’, Econometrica, 33, 1965.CrossRefGoogle Scholar
Burrows, P., ‘Explanatory and forecasting models of inventory investment in Britain’, Applied Economics, 3, 1971.CrossRefGoogle Scholar
Cohen, R.M., ‘Integrating the real and financial via the links of financial flows’, Journal of Finance, 23, 1968.CrossRefGoogle Scholar
Darling, P.G. and Lovell, M.C., ‘Factors influencing investment in inventories’, in Duesenberry, J. S., Fromm, G., Klein, L. R., and Kuh, E. (eds), ‘The Brookings Quarterly Model of the United States’, North-Holland, 1965.Google Scholar
Eisner, R. and Strotz, R.H., ‘Determinants of business investment’ in ’Commission on money and credit, impacts of monetary policy’, Prentice-Hall, 1963.Google Scholar
Lovell, M.C., ‘Determinants of inventory investment’, in NBER ‘Studies in income and wealth’, vol 28, ‘Models of income determination’, Princeton University Press, 1964.Google Scholar
Trivedi, P.K., ‘Inventory behaviour in UK manufacturing, 1956-67’, Review of Economic Studies, 37, 1970.CrossRefGoogle Scholar
Artis, M.J., Kieruan, E., and Whitley, J.D., ‘The effects of building society behaviour on housing investment’, in Parkin, M. (ed), ‘Essays in modern economics’, Longman, 1973.Google Scholar
Duffy, M., ‘A model of UK private investment in dwellings’, London Graduate School of Business Studies Discussion Paper, No 18, 1970.Google Scholar
Fisher, R.M. and Siegman, C.J., ‘Patterns of housing experience during periods of credit restraint in industrialised countries’, Journal of Finance, 27, 1972.CrossRefGoogle Scholar
Grebler, L. and Maizel, S.J., ‘Determinants of residential construction: a review of present knowledge’, in Suits, D. B., et al, ‘Impacts of monetary policy’, Research studies prepared for the commission on money and credit, Prentice Hall, 1963.Google Scholar
Guttentag, J.M., ‘The short cycle in residential construction’, American Economic Review, 51, 1961.Google Scholar
O'Herlihy, C. St. J. and Spencer, J.E., ‘Building Societies' behaviour’, National Institute Economic Review, August 1972.Google Scholar
Vipond, M.J., ‘Fluctuations in private housebuilding in the UK, 1950-66’, Scottish Journal of Political Economy, 16, 1969.Google Scholar
Whitehead, ‘The UK housing market, an econometric model’, Saxon House, 1974.Google Scholar