Konferenzbeitrag
Heterogeneity in money holdings across euro area countries: the role of housing
In this paper we examine why monetary aggregates of euro area Member States have developed differently since the inception of the euro. We derive a money demand equation that incorporates housing wealth and collateral as well as substitution effects on real money holdings. Empirically, we show that cross-country differences in real balances are determined not only by income differences, a standard determinant of money demand, but also by house price developments. Higher house prices and higher user costs of housing are both associated with larger money holdings. Country-specific money holdings are also connected with structural features of the housing market. We infer from these findings that housing developments should feature prominently in the ECB's monetary analysis.
- Language
-
Englisch
- Bibliographic citation
-
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Trade, Financial Markets, and the Euro ; No. E12-V3
- Classification
-
Wirtschaft
Demand for Money
Money Supply; Credit; Money Multipliers
Monetary Policy
- Subject
-
Money, housing, national contribution, euro area
- Event
-
Geistige Schöpfung
- (who)
-
Setzer, Ralph
van den Noord, Paul
Wolff, Guntram B.
- Event
-
Veröffentlichung
- (who)
-
Verein für Socialpolitik
- (where)
-
Frankfurt a. M.
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Setzer, Ralph
- van den Noord, Paul
- Wolff, Guntram B.
- Verein für Socialpolitik
Time of origin
- 2010
Other Objects (12)
Heterogeneity in money holdings across euro area countries: The role of housing
Heterogeneity in money holdings across euro area countries: The role of housing
Are banks affected by their holdings of government debt?
A budget for Europe's monetary union
Measuring tax burdens in Europe
Editorial: While Europe's Geoeconomic Strategy Solidifies, Blind Spots Remain
Arithmetic is absolute: Euro-area adjustment
Eurosystem collateral policy and framework: Was it unduly changed?
Foreign direct investment in the enlarged EU: do taxes matter and to what extent?
Challenges for the Euro area and implications for Latvia
Measuring Tax Burdens in Europe
Fiscal crises in US cities: Structural and non-structural causes
Heterogeneity in money holdings across euro area countries: The role of housing
Heterogeneity in money holdings across euro area countries: The role of housing
Are banks affected by their holdings of government debt?
A budget for Europe's monetary union
Measuring tax burdens in Europe
Editorial: While Europe's Geoeconomic Strategy Solidifies, Blind Spots Remain
Arithmetic is absolute: Euro-area adjustment
Eurosystem collateral policy and framework: Was it unduly changed?
Foreign direct investment in the enlarged EU: do taxes matter and to what extent?
Challenges for the Euro area and implications for Latvia
Measuring Tax Burdens in Europe
Fiscal crises in US cities: Structural and non-structural causes
Heterogeneity in money holdings across euro area countries: The role of housing
Heterogeneity in money holdings across euro area countries: The role of housing
Are banks affected by their holdings of government debt?
A budget for Europe's monetary union
Measuring tax burdens in Europe
Editorial: While Europe's Geoeconomic Strategy Solidifies, Blind Spots Remain
Arithmetic is absolute: Euro-area adjustment
Eurosystem collateral policy and framework: Was it unduly changed?
Foreign direct investment in the enlarged EU: do taxes matter and to what extent?
Challenges for the Euro area and implications for Latvia
Measuring Tax Burdens in Europe