M3 Money Demand and Excess Liquidity in the Euro Area

Artikel

Recent empirical studies have found evidence of unstable long run money demand functions if recent data are used. If the link between money balances and the macroeconomy is fragile, the rationale of monetary aggregates in the ECB strategy has to be doubted. In contrast we present a ``stable'' long run money demand relationship for M3 for the period 1983-2006. To obtain the result, the short run homogeneity restriction between money and prices is relaxed and a break in the income elasticity of money demand after 2001 is taken into account. Measures of excess liquidity do not show significant inflation pressures.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Public Choice ; ISSN: 1573-7101 ; Volume: 144 ; Year: 2010 ; Issue: 3 ; Pages: 459-472 ; Berlin: Springer

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes ; Model Evaluation, Validation, and Selection ; Demand for Money
• Thema: Cointegration analysis ; error correction ; excess liquidity ; monetary policy ; money demand

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dreger, Christian ; Wolters, Jürgen
• Ereignis: Veröffentlichung
• (wer): Springer ; ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (wo): Berlin
• (wann): 2010

Weitere Informationen

• DOI: doi:10.1007/s11127-010-9679-5
• Handle: http://hdl.handle.net/10419/144568
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ