Money, Inflation, and Output under Fiat and Commodity Standards

  title={Money, Inflation, and Output under Fiat and Commodity Standards},
  author={Arthur J. Rolnick and Warren E. Weber},
  journal={Journal of Political Economy},
  pages={1308 - 1321}
We examine the behavior of money, inflation, and output under fiat and commodity standards to better understand how changes in monetary policy affect economic activity. Using long‐term historical data for 15 countries, we find that, under fiat standards, the growth rates of various monetary aggregates are more highly correlated with inflation and with each other than under commodity standards. Money growth, inflation, and output growth are also higher. In contrast, we do not find that money… 
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Nobel Lecture: Monetary Neutrality
  • R. Lucas
  • Economics
    Journal of Political Economy
  • 1996
The work for which I have received the Nobel Prize was part of an effort to understand how changes in the conduct of monetary policy can influence inflation, employment, and production. So much