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A monetary submodel for the dutch economy: Some preliminary results

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Summary

This econometric model is on an annual basis and has been estimated for the period 1953–1969 using the two-stages least-squares method. All behavioral equations are based on a partial adjustment mechanism. The behavior of the public is expressed by the demand for currency, demand deposits and time-and-savings deposits. The behavior of the banking system is described by a required reserves identity and by the demand for excess reserves, borrowed reserves and net foreign assets. The main instruments of monetary policy under the direct control of the central bank are explicitly included in the analysis. Some impact multipliers and elasticities are shown.

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Authors and Affiliations

  1. Department of Economics of Erasmus University, Rotterdam, the Netherlands

    Peter D. Van Loo (Member of the Money and Banking Workshop)

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  1. Peter D. Van Loo
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Van Loo, P.D. A monetary submodel for the dutch economy: Some preliminary results. De Economist 122, 89–128 (1974). https://doi.org/10.1007/BF01680100

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