Monetary Deregulation and Consumption: Evidence from Certain Components of Consumption

Abstract

This paper investigates the impact of the monetary deregulation in Greece that occurred in 1988 on the relationship between real money balances and real credit and certain components of consumption, namely, durables and non-durables. The Granger-causality methodology is used to examine this relationship over the 1958-1987 periods. The results demonstrate that the deregulation has affected only the consumption of durable goods.