Econometric models reveal key relationship between money, output, and prices.
The article discusses how money, output, and prices are related using econometric models like Granger causality and VAR. Different researchers used various models and techniques to study this relationship. Some used VAR models with ECM and Johansen-Juselius procedure, while others used simulation models with regression equations. Only one study used filters for prewhitening nonstationary series. Overall, the research found different approaches to analyzing the connection between money, output, and prices.