Arbeitspapier
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.
- Language
-
Englisch
- Bibliographic citation
-
Series: ROME Discussion Paper Series ; No. 10-09
- 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)
-
Research On Money in the Economy (ROME)
- (where)
-
s.l.
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Setzer, Ralph
- van den Noord, Paul
- Wolff, Guntram B.
- Research On Money in the Economy (ROME)
Time of origin
- 2010
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