MONETARY-POLICY AND SEPARATED MONETARY CIRCUITS IN A MODIFIED CPE (THE CASE OF HUNGARY)

The economies of the formerly socialist countries can be characterized by separated monetary circuits. In establishing behavioural relations and building macroeconomic models one must be careful with using aggregate categories because of this separation. The existence and the extent of the separation of household, enterprise and government monetary circuits is an empirical question. This paper provides several statistical tests of hypotheses related to the effects of monetary policy on various economic variables at different levels of aggregation.