New test uncovers key economic drivers impacting GDP across different frequencies
Scientists have developed a new test to find important causal relationships between two sets of data at different frequencies. They used a method called the bootstrap test to compare these relationships and see which ones stand out the most. By applying this test to economic data from the Euro Area, they found that the amount of money in circulation had a big impact on the economy over a long period of time, while the economy's effect on money was only significant in short bursts.