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Weighted Dutch and German Monetary Aggregates: How Do They Perform as Monetary Indicators for The Netherlands

  • Norbert G. J. Janssen
  • Clemens J. M. Kool

Abstract

In the 1970s, the heyday of monetarism, ‘money matters’ gradually became incorporated into mainstream macroeconomics. It was generally recognised that shocks to the money supply formed an important source of business-cycle fluctuations, and that excessive money growth caused inflation in the intermediate run. As a consequence, many central banks switched to a policy of targeting growth rates of monetary aggregates to control inflation. Prime examples are the USA, Switzerland and Germany. Over the years since then, however, most central banks in the industrialised world have again abandoned monetary targeting, although inflation control – or even price stability – remains their dominant policy objective.

Keywords

Interest Rate Monetary Policy Monetary Aggregate Real Growth European Monetary System 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 2000

Authors and Affiliations

  • Norbert G. J. Janssen
  • Clemens J. M. Kool

There are no affiliations available

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