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Testing for deterministic monetary chaos: Metric and topological diagnostics

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  • Barkoulas, John T.

Abstract

The evidence of deterministic chaos in monetary aggregates tends to be contradictory in the literature. We revisit the issue of monetary chaos by applying tools based on both the metric (correlation dimension and Lyapunov exponents) and topological (recurrence plots) approaches to chaos. For simple-sum and divisia monetary aggregates over an expanded sample period, the empirical evidence from both approaches is negative for monetary chaotic dynamics.

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  • Barkoulas, John T., 2008. "Testing for deterministic monetary chaos: Metric and topological diagnostics," Chaos, Solitons & Fractals, Elsevier, vol. 38(4), pages 1013-1024.
    • Handle: RePEc:eee:chsofr:v:38:y:2008:i:4:p:1013-1024
    DOI: 10.1016/j.chaos.2007.01.065
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    Cited by:

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    3. Ioannis Andreadis & Athanasios D. Fragkou & Theodoros E. Karakasidis & Apostolos Serletis, 2023. "Nonlinear dynamics in Divisia monetary aggregates: an application of recurrence quantification analysis," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-17, December.
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