Empirical Economics

, Volume 10, Issue 1, pp 13–25 | Cite as

Monetary aggregates, their information content and their aggregation error: Some preliminary findings for Austria, 1965–1980

  • M. J. Driscoll
  • J. L. Ford
  • A. W. Mullineux
  • W. Kohler
Article
  • 26 Downloads

Summary

In this paper we use information theory to assess the indicator quality, in the Austrian economy, of various monetary aggregates. In addition to simple sum aggregates we utilise discrete Divisia quantity indices, which have reputable aggregation and statistical attributes. Without using a particular macro-economic model we estimate the expected information gains, with respect to various policy objectives like inflation, real growth and unemployment, derived from monitoring various monetary aggregates. Finally, we compare the empirical results derived for Austria with those provided in earlier studies, using UK and United States data.

Keywords

Economic Theory Empirical Result Information Content Indicator Quality Preliminary Finding 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Baily, R.W., M.J. Driscoll, J.L. Ford, andA.W. Mullineux: The information content of monetary aggregates in the U.K. Economics Letters9, 1982a, 61–67.CrossRefGoogle Scholar
  2. —: The aggregation error in Divisia monetary aggregates: some findings for the U.K. 1963–1980. Economics Letters10, 1982b, 123–128.CrossRefGoogle Scholar
  3. Barnett, W.A.: The user cost of money. Economics Letters1, 1978, 145–149.CrossRefGoogle Scholar
  4. —: Economic monetary aggregates: an application of index number and aggregation theory. Journal of Econometrics, Vol.14, No 1, 1980, 11–48.CrossRefGoogle Scholar
  5. Barnett, W.A., andP.A. Spindt: The velocity behaviour and information content of Divisia monetary aggregates. Economics Letters4, 1979, 51–57.CrossRefGoogle Scholar
  6. -: The information content of Divisia monetary quantity indices. Federal Reserve Board Special Studies Paper, 1980, No. 146.Google Scholar
  7. Friedman, M., andD. Meiselman: The relative stability of monetary velocity and the investment multiplier in the United States, 1897–1958. Commissions on Money and Credti, 1962.Google Scholar
  8. Friedman, M., andA.J. Schwartz: Monetary Statistics of the United States (New York: National Bureau of Economic Research), 1970.Google Scholar
  9. Samuelson, P.A., andS. Swamy: Invariant economic index numbers and canonical duality: survey and synthesis. American Economic Review64, 1974, 566–593.Google Scholar
  10. Theil, H.: Economics and Information Theory. North-Holland: Amsterdam 1967.Google Scholar
  11. Tinsley, P.A., P.A. Spindt, andM.E. Friar: Indicator and filter attributes of Monetary aggregates. Journal of Econometrics14, 1980, 61–91.CrossRefGoogle Scholar
  12. Winckler, G.: Monetary policy in Austria in the 1970's. In: H. Abele et al. Handbuch der österreichischen Wirtschaftspolitik, Mainz-Wien 1982.Google Scholar

Copyright information

© Physica-Verlag 1985

Authors and Affiliations

  • M. J. Driscoll
    • 1
  • J. L. Ford
    • 1
  • A. W. Mullineux
    • 1
  • W. Kohler
    • 2
  1. 1.Department of EconomicsUniversity of BirminghamBirminghamEngland
  2. 2.Universität InnsbruckÖsterreich

Personalised recommendations