Quarterly Journal of Austrian Economics
Author:
Frank Shostak
Online Publish Date:
Volume 3, No. 4 (Winter 2000) According to mainstream economics, the validity of various definitions of money can be ascertained by means of a statistical test. What determines whether money M1, M2, and the other Ms are valid definitions is how well they correlate with national income. Most economists hold that, since the early 1980s, correlations