How might bank behavior (described in Chapter 16) lead to causation running from output to the money

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How might bank behavior (described in Chapter 16) lead to causation running from output to the money supply? What does this say about evidence that finds a strong correlation between money and output?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:34 AM

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How might bank behavior (described in Chapter 16) lead to causation running from output to the money

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We learned in Chapter 6 that interest rates tend to ...View the full answer

Economics of Money, Banking and Financial Markets

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