Output Gap, Money Growth and Interest Rate in Japan: Evidence from Wavelet Analysis

SAGE,Pages;2-12

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Główni autorzy: Tiwari, Aviral Kumar, Olayeni, Olaolu Richard, Jahromi, Reza Sherafatian, Adejonwo, Olofin Sodik
Format: Czasopismo
Język:angielski
Wydane: SAGE publisher 2023
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Dostęp online:https://ir.oauife.edu.ng/123456789/5468
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author Tiwari, Aviral Kumar
Olayeni, Olaolu Richard
Jahromi, Reza Sherafatian
Adejonwo, Olofin Sodik
author_facet Tiwari, Aviral Kumar
Olayeni, Olaolu Richard
Jahromi, Reza Sherafatian
Adejonwo, Olofin Sodik
author_sort Tiwari, Aviral Kumar
collection DSpace
description SAGE,Pages;2-12
format Journal
id oai:ir.oauife.edu.ng:123456789-5468
institution My University
language English
publishDate 2023
publisher SAGE publisher
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spelling oai:ir.oauife.edu.ng:123456789-54682023-05-13T18:08:25Z Output Gap, Money Growth and Interest Rate in Japan: Evidence from Wavelet Analysis Tiwari, Aviral Kumar Olayeni, Olaolu Richard Jahromi, Reza Sherafatian Adejonwo, Olofin Sodik Output gap, money growth, interest rate, wavelet analysis, causality, Japan SAGE,Pages;2-12 This article investigated the relationship between output, money and interest rate, using wavelet tools for the period 1972–2017. Application of such tools is helpful in answering particularly two questions: first, what the strength and direction of the causal relationships between money, output and interest rate is, and second, whether the relationship is cyclical or anti-cyclical in nature. Findings from this article show that output and money are highly coherent in low, middle and high frequencies, and coherence increases while controlling for interest rate, with money growth as the leading variable most of the time across frequencies. Output and interest rate are equally highly coherent, mostly at high frequency and some bits of middle frequency; coherence increases with the control for money, and interest rate often times leads the relationship. Also, money and interest rate are coherent at low, middle and high frequencies with interest rate leading the relationship, and controlling the effect of output increases the coherence at some times and decreases at other times. There are observable evidences of both cyclical and anti-cyclical relationships among the variables. Policy decisions should be cautious of shortrun moves in order not to trigger undesired long-run outcomes since no difference is observed in the direction of causation over time–frequency 2023-05-13T17:45:38Z 2023-05-13T17:45:38Z 2018 Journal https://ir.oauife.edu.ng/123456789/5468 en application/pdf SAGE publisher
spellingShingle Output gap, money growth, interest rate, wavelet analysis, causality, Japan
Tiwari, Aviral Kumar
Olayeni, Olaolu Richard
Jahromi, Reza Sherafatian
Adejonwo, Olofin Sodik
Output Gap, Money Growth and Interest Rate in Japan: Evidence from Wavelet Analysis
title Output Gap, Money Growth and Interest Rate in Japan: Evidence from Wavelet Analysis
title_full Output Gap, Money Growth and Interest Rate in Japan: Evidence from Wavelet Analysis
title_fullStr Output Gap, Money Growth and Interest Rate in Japan: Evidence from Wavelet Analysis
title_full_unstemmed Output Gap, Money Growth and Interest Rate in Japan: Evidence from Wavelet Analysis
title_short Output Gap, Money Growth and Interest Rate in Japan: Evidence from Wavelet Analysis
title_sort output gap money growth and interest rate in japan evidence from wavelet analysis
topic Output gap, money growth, interest rate, wavelet analysis, causality, Japan
url https://ir.oauife.edu.ng/123456789/5468
work_keys_str_mv AT tiwariaviralkumar outputgapmoneygrowthandinterestrateinjapanevidencefromwaveletanalysis
AT olayeniolaolurichard outputgapmoneygrowthandinterestrateinjapanevidencefromwaveletanalysis
AT jahromirezasherafatian outputgapmoneygrowthandinterestrateinjapanevidencefromwaveletanalysis
AT adejonwoolofinsodik outputgapmoneygrowthandinterestrateinjapanevidencefromwaveletanalysis