The elasticity of prices with respect to monetary components: some estimates for the UK 1948-1979.

This paper reports estimates of the elasticity of various monetary components in the UK by assessing their ability to explain prices. Tests of the Monetarist proposition, that a unit change in a (weighted) monetary aggregate might lead to a unit change in the price level in the long run, and of the appropriateness of the current practice of constructing monetary aggregates by the simple summation of monetary components, are also performed. [ABSTRACT FROM AUTHOR]