Monetary aggregates
-
Financial Conditions and the Money-Output Relationship in Canada
We propose a drifting-coefficient model to empirically study the effect of money on output growth in Canada and to examine the role of prevailing financial conditions for that relationship. We show that such a time-varying approach can be a useful way of modelling the impact of money on growth, and can partly reconcile the lack of concensus in the literature on the question of whether money affects growth. -
Resurrecting the Role of Real Money Balance Effects
I present a structural econometric analysis supporting the hypothesis that money is still relevant for shaping inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively important, although smaller than they used to be in the early postwar period. -
16 June 2008 A Money and Credit Real-Time Database for Canada
Model-based forecasts of important economic variables are part of the range of information considered for monetary policy decision making. -
Perhaps the FOMC Did What It Said It Did: An Alternative Interpretation of the Great Inflation
This paper uses real-time briefing forecasts prepared for the Federal Open Market Committee (FOMC) to provide estimates of historical changes in the design of U.S. monetary policy and in the implied central-bank target for inflation. Empirical results support a description of policy with an effective inflation target of roughly 7 percent in the 1970s. -
Regime Shifts in the Indicator Properties of Narrow Money in Canada
Financial innovations and the removal of the reserve requirements in the early 1990s have made the distinction between demand and notice deposits arbitrary. -
Money and Credit Factors
The authors introduce new measures of important underlying macroeconomic phenomena that affect the financial side of the economy. -
Does Financial Structure Matter for the Information Content of Financial Indicators?
Of particular concern to monetary policy-makers is the considerable unreliability of financial variables for predicting GDP growth and inflation. -
25 June 2005 Changes in the Indicator Properties of Narrow Monetary Aggregates
Although many countries have abandoned monetary targeting in recent decades, monetary aggregates are still useful indicators of future economic activity. Past research has shown that, compared with other monetary aggregates and expressed in real terms, net M1 and gross M1 have traditionally provided superior leading information for output growth. -
Money Demand and Economic Uncertainty
The author examines the impact of economic uncertainty on the demand for money. -
The Demand for Money in a Stochastic Environment
The author re-examines the demand-for-money theory in an intertemporal optimization model. The demand for real money balances is derived to be a function of real income and the rates of return of all financial assets traded in the economy.