Abstract
Estimates of aggregated and disaggregated demand-for-money functions in 7 EMU member states show that the aggregated function slightly outperforms the disaggregated functions in explaining the European demand for M3. The aggregated function appears to contain some additional information on money demand in The Netherlands and, to a lesser extent, in France. For the other countries investigated in this study information on aggregated European money demand does not add much to the explanation of demand for money in the individual countries.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Angeloni, I., C. Cottarelli, and A. Levy (1994) “Cross-Border Deposits, Aggregation, and Money Demand in the Transition to EMU.” Journal of Policy Modeling 16, 27–54.
Arnold, I.J.M. (1992) “The Derivation of the Liquidity Ratio in the EMS, Comment on Kremers and Lane.” IMF Staff Papers 39, 195–202.
Arnold, I.J.M. (1994) “The Myth of a Stable European Money Demand.” Open Economies Review 5, 249–259.
Bates, J.M. and C.W.J. Granger (1969) “The Combination of Forecasts.” Operations Research Quarterly 20, 451–468.
Butter, F.A.G. den and M.M.G. Fase (1981) “The Demand for Money in EEC Countries.” Journal of Monetary Economics 8, 201–230.
Butter, F.A.G. den and F.J.J.S. van de Gevel (1989) “Prediction of the Netherlands Money Stock.” De Economist 137, 173–201.
Fase, M.M.G. (1994) “In Search for Stability: An Empirical Appraisal of the Demand for Money in G7 and EC Countries.” De Economist 142, 421–454.
Fase, M.M.G. and J.B. Kuné (1974) “De Vraag naar Liquiditeiten in Nederland 1952–1971.” De Economist 122, 326–356.
Fase, M.M.G. and C.C.A. Winder (1993) “The Demand for Money in the Netherlands and the Other EC Countries.” De Economist 141, 471–496.
Fase, M.M.G. and C.C.A. Winder (1994) “De Geldhoeveelheid in de EMU: Een Analyse met de Divisia-maatstaf.” De Nederlandsche Bank, Onderzoeksrapport WO&E Nr. 402, July 1994.
Johansen, S. (1992) “Testing Weak Exogeneity and the Order of Cointegration in UK Money Demand Data.” Journal of Policy Modeling 14, 313–334.
Juselius, K. (1995) “A Structured VAR under Changing Monetary Policy.” Mimeo.
Kremers, J.J.M. and T.D. Lane (1990) “Economic and Monetary Integration and the Aggregate Demand for Money in the EMS.” IMF Staff Papers 37, 777–805.
Winder, C.C.A. and F.J.J.S. van de Gevel (1992) “Predictions of the Netherlands Money Stock: An Application of Combining Forecasts.” Economic and Financial Computing 2, 65–78.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Butter, F.A.D., Dijken, S.V. The Information Contents of Aggregated Money Demand in the EMU. Open Economies Review 8, 233–244 (1997). https://doi.org/10.1023/A:1008290714581
Issue Date:
DOI: https://doi.org/10.1023/A:1008290714581