Simple Sum vs Divisia Monetary Aggregates
Simple Sum vs Divisia Monetary Aggregates

Author: Debashis Acharya

Publisher:

Published: 2006

Total Pages: 10

ISBN-13:

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This paper attempts an empirical evaluation of Divisia moneyary aggregates for India ,constructed using four assets, viz, currency with the public, net demand deposits with banks, net time deposits with banks, and post office savings deposits. The performance of these aggregates in relation to simple sum aggregates is evaluated in terms of some standard tests such as the J-test, information content test, and the money demand test. The results suggest that the Divisia monetary aggregates have a clear edge over thei simple sum counterpart.

Alternative Economic Indicators
Alternative Economic Indicators

Author: C. James Hueng

Publisher: W.E. Upjohn Institute

Published: 2020-09-08

Total Pages: 133

ISBN-13: 0880996765

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Policymakers and business practitioners are eager to gain access to reliable information on the state of the economy for timely decision making. More so now than ever. Traditional economic indicators have been criticized for delayed reporting, out-of-date methodology, and neglecting some aspects of the economy. Recent advances in economic theory, econometrics, and information technology have fueled research in building broader, more accurate, and higher-frequency economic indicators. This volume contains contributions from a group of prominent economists who address alternative economic indicators, including indicators in the financial market, indicators for business cycles, and indicators of economic uncertainty.

Monetary Aggregation
Monetary Aggregation

Author: Huw R. Pill

Publisher:

Published: 2006

Total Pages: 22

ISBN-13:

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Monetary assets have different characteristics which make them more or less useful in facilitating transactions. Academic economists have consistently argued that these differences should be incorporated in monetary aggregates by assigning assets different weights. However, central banks continue to use conventional aggregates with equal weights for all assets. For a transactions model of money, which the academic view implicitly embodies, weighted aggregates, although imperfect, are certainly superior. However, once this structural model is abandoned in favor of alternatives where monetary assets play a different role, central banks` continued use of simple sum measures of money may be justified.

Global Liquidity through the Lens of Monetary Aggregates
Global Liquidity through the Lens of Monetary Aggregates

Author: Kyuil Chung

Publisher: International Monetary Fund

Published: 2014-01-24

Total Pages: 49

ISBN-13: 1475514557

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This paper examines how the financial activities of non-financial corporates (NFCs) in international markets potentially affects domestic monetary aggregates and financial conditions. Monetary aggregates reflect, in part, the activities of NFCs, who channel capital market financing into the domestic banking system, thereby influencing funding conditions and credit availability. Periods of capital inflows are also those when the domestic currency is appreciating, and such periods of rapid exchange rate appreciation coincide with increases in the central bank’s foreign exchange reserves, increasing the stock of narrow money. The paper examines economic significance of cross-country panel data on monetary aggregates and other measures of non-core bank liabilities. Non-core liabilities that reflect the activities of NFCs reflect broad credit conditions and predict global trade and growth.