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Measuring Inflation: Testing Carl Menger’s Concept of the Inner Value of Money

Year:    2001

Author:    Fase, M.M.G., Folkertsma, C. K

Credit and Capital Markets – Kredit und Kapital, Vol. 34 (2001), Iss. 2 : pp. 197–222

Abstract

This paper attempts to operationalize Carl Menger’s concept of the “innerer Tauschwert des Geldes”, i.e. the inner value of money. Since the change in the inner value of money is the component of price movements which is due to monetary influences, the operationalization provides an alternative measure of inflation. We consider several approaches for gauging the change in the inner value of money. Of these, we use a structural VAR model to identify the price movements in the Netherlands and the EU due to monetary shocks. (JEL E31)

Journal Article Details

Publisher Name:    Global Science Press

Language:    Multiple languages

DOI:    https://doi.org/10.3790/ccm.34.2.197

Credit and Capital Markets – Kredit und Kapital, Vol. 34 (2001), Iss. 2 : pp. 197–222

Published online:    2001-02

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    26

Author Details

Fase, M.M.G.

Folkertsma, C. K

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