Monetarism in ireland - a simple statistical approach

Abstract

This paper deals with the relationship in Ireland between money and prices during the period since 1960. It is shown that the causal relationship is from money to prices very much more than the other way about. Chain of causality is verified by analysing each half of the whole period 1960-1979. Based on data for the later half it is found that an annual rise of one per cent in money will be followed by a rise of about % per cent a year later.