Three Monetarist models--the Netherlands Bank Model, the Polak Model and the St. Louis Model--are critically examined in this study. A structural model has been set up for the St. Louis Model, showing some missing links and variables. The reduced-form approach should not be applied recklessly, i.e. without constructing its theoretical structural equations. Furthermore, in empirical studies, the concepts of stock and flow, and time references and time dimensions should be properly specified; failure to do so can lead to difficulties in interpretation. / The Netherlands Bank Model and the St. Louis Model have been applied to the Canadian economy from 1957 to 1974. The findings from this empirical study are, in general, favourable to the Monetarist hypothesis. The application of the Netherlands Bank Model to the Canadian economy demonstrates that the monetary impulses induce greater changes in nominal income and price level than in real income. The empirical results derived from the application of the St. Louis Model on a short-term basis support a middle ground position between Monetarists and Fiscalists: the monetary and fiscal impulses exert about the same magnitude effect (about 1.5) on economic activity in a year. On a medium-term basis, however, monetary impulses have a more lasting effect on nominal income, while the effects from the fiscal impulses disappear mainly because of the crowding-out effects.
| Identifer | oai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:QMM.68523 |
| Date | January 1979 |
| Creators | Wang, Hong-cheng. |
| Publisher | McGill University |
| Source Sets | Library and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada |
| Language | English |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Format | application/pdf |
| Coverage | Doctor of Philosophy (Department of Economics) |
| Rights | All items in eScholarship@McGill are protected by copyright with all rights reserved unless otherwise indicated. |
| Relation | alephsysno: 000090234, proquestno: AAINK50585, Theses scanned by UMI/ProQuest. |
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