ERM Money Supplies and the Transition to EMU /

Stage 2 of monetary union in the Europe is to involve greater monetary cooperation; the paper examines the case for using the M3 money supply aggregated across 'core ERM' countries- -those with low inflation and absence of realignments- -as a vehicle for that cooperation. First, the existe...

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Библиографические подробности
Главный автор: Masson, Paul
Другие авторы: Cassard, Marcel, Lane, Timothy
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 1994.
Серии:IMF Working Papers; Working Paper ; No. 1994/001
Online-ссылка:Full text available on IMF
Описание
Итог:Stage 2 of monetary union in the Europe is to involve greater monetary cooperation; the paper examines the case for using the M3 money supply aggregated across 'core ERM' countries- -those with low inflation and absence of realignments- -as a vehicle for that cooperation. First, the existence of a satisfactory long-run money demand relationship and short-run dynamic equation is verified. The resulting demand equations have at least as satisfactory econometric properties as those for France and Germany separately. Second, the predictive power of the core-ERM aggregate relative to French and German inflation is examined; it is shown that the aggregate helps to predict German inflation, over and above the predictive power of German M3. Thus, core-ERM M3 has value as an indicator for the anchor country in hitting its own domestic objective, quite separate from any concern about economic developments in neighboring countries.
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Объем:1 online resource (42 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
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