Comparing Interest-Rate Spreads and Money Growth as Predictors of Output Growth: Granger Casuality in the Sense Granger Intended

Authors

Gregory Hess, Claremont McKenna CollegeFollow
Richard D. Porter

Document Type

Article

Department

Economics (CMC)

Publication Date

1993

Abstract

This paper compares the ability of interest rate spreads and monetary aggregates to predict output growth. We examine two spread indicators--the spread between the federal funds rate and the treasury bond rate, proposed by Bernanke and Blinder (1992), and the spread between the commercial paper rate and the treasury bill rate, championed by Friedman and Kuttner (1991a, b)--and two monetary aggregates, M1 and M2.

Rights Information

© 1993 Elsevier Inc.

Terms of Use & License Information

Terms of Use for work posted in Scholarship@Claremont.

DOI

10.1016/0148-6195(93)90016-H

Recommended Citation

Gregory D. Hess, Richard D. Porter, Comparing interest-rate spreads and money growth as predictors of output growth: Granger causality in the sense Granger intended, Journal of Economics and Business, Volume 45, Issues 3–4, August–October 1993, Pages 247-268, ISSN 0148-6195, 10.1016/0148-6195(93)90016-H. (http://www.sciencedirect.com/science/article/pii/014861959390016H)