In the eighties and early nineties a number of attempts were made to measure the relationship between various measures of money supply growth and the growth in GDP, GDE, Household Consumption Expenditure and Consumer Prices between 1966 and 1993. (82, 1984,1989, 1990b, 1993) This earlier work on the relationship between money economic activity and prices was concluded in 1990 with an attempt to separate monetary causes and effects. That is to estimate whether the money to expenditure and income link was stronger than the income to money link, given the accommodative nature of money supply responses. It was reported that the money to income link was stronger than the reverse income to money influence, using a vector auto-regression approach. (1990a). The purpose of this paper is to update this analysis to include the past twenty years of data to establish whether or not money still matters for the SA economy in the way it did.
The full paper is available here: Money supply and economic activity (2012)