Divisia Monetary Aggregates: Theory and Practice

✍ Scribed by Michael T. Belongia, Jane M. Binner

• Publisher: Palgrave Macmillan
• Year: 2000
• Tongue: English
• Leaves: 337
• Category: Library

✦ Synopsis

The leading researchers from central banks and universities around the world debate issues central to the performance of Divisia monetary aggregates both in theory and in practice. The book is divided into four sections. The first contains two papers which present particularly new ideas and applications. The first, by William Barnett and his co-author, Yi Liu, takes the novel approach of incorporating the riskiness of an asset into the contraction of a Divisia aggregate. The second, by Robert Dorsey, presents the first application of neutral network technology to the Divisia index debate. the remaining three sections examine the Divisia issue from a geographical perspective. There are five papers on European issues, four papers from the Pacific Basin area and two papers in the final section covering the North American region. The overall conclusions are that Divisia monetary aggregates outperform their simple sum counterparts in a wide range of applications the world over.

✦ Table of Contents

Contents......Page 6
List of Figures......Page 8
List of Tables......Page 10
Notes on the Contributors......Page 13
Introductory Comments, Definitions, and Research on Indexes of Monetary Services......Page 17
Part I. New Results in Theory and Practice......Page 25
1. Beyond the Risk-neutral Utility Function......Page 27
2. Neural Networks with Divisia Money: Better Forecasts of Future Inflation......Page 44
Part II. Evidence from European Economies and the Planned EMU Area......Page 61
3. Weighted Monetary Aggregates for the UK......Page 63
4. Weighted Monetary Aggregates for Germany......Page 95
5. Simple-sum versus Divisia Money in Switzerland: Some Empirical Results......Page 118
6. Weighted Dutch and German Monetary Aggregates: How Do They Perform as Monetary Indicators for The Netherlands......Page 136
7. Divisia Aggregates and the Demand for Money in Core EMU......Page 154
Part III. Evidence from the Pacific Basin......Page 187
8. Broad and Narrow Divisia Monetary Aggregates for Japan......Page 189
9. The Signals from Divisia Money in a Rapidly Growing Economy......Page 216
10. Divisia Monetary Aggregates for Taiwan......Page 243
11. Weighted Monetary Aggregates: Empirical Evidence for Australia......Page 265
Part IV. Evidence from North America......Page 279
12. The Canadian Experience with Weighted Monetary Aggregates......Page 281
13. Consequences of Money Stock Mismeasurement: Evidence from Three Countries......Page 308
Index......Page 329