Money and the Consumption Goods Market in China

27 Pages Posted: 15 Mar 2007 Last revised: 28 Mar 2010

See all articles by Richard Portes

Richard Portes

London Business School - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Anita Santorum

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: February 1987

Abstract

This paper studies the relations between money and other macroeconomic variables as well as excess demand in the consumption goods market for the case of China, 1954-83. We explicitly recognize the endogeneity of money in the CPE and do not impose (but instead test) some common restrictive assumptions; we assess the extent of aggregate excess demand (supply) in a macroeconomic disequilibrium model; and we allow at the macro level for the possible coexistence of micro markets in different states of excess demand or supply (shortages or slacks). We find bidirectional causality between money and income; that M[sub0] behaves in a manner more suited to building simple, conventional models than does M[sub 2]; and that there has been a mixed pattern of excess supplies and demands over the three decades.

Suggested Citation

Portes, Richard and Santorum, Anita, Money and the Consumption Goods Market in China (February 1987). NBER Working Paper No. w2143, Available at SSRN: https://ssrn.com/abstract=971622

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Centre for Economic Policy Research (CEPR)

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United Kingdom

National Bureau of Economic Research (NBER)

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Anita Santorum

affiliation not provided to SSRN

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