Portfolio Disequilibrium: Implications for the Divisia Approach to Monetary Aggregation
AbstractThe first part of the paper reviews the performance of the U.K.'s official monetary aggregates during the 1980s and argues that Divisia aggregation is, in principle, likely to offer a sounder basis for monetary analysis and policy. The central sections develop an econometric model of the demand for retail balances and examine the effect of portfolio disequilibrium, showing how this makes it appropriate to smooth the user costs in a particular way when using them to construct a Divisia aggregate. The final section of the paper shows that the resulting aggregate is closely associated with economic activity and prices once an allowance is made for the growth in the use of credit cards. Copyright 1994 by Blackwell Publishers Ltd and The Victoria University of Manchester
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by University of Manchester in its journal The Manchester School of Economic & Social Studies.
Volume (Year): 62 (1994)
Issue (Month): 2 (June)
Contact details of provider:
Postal: Manchester M13 9PL
Phone: (0)161 275 4868
Fax: (0)161 275 4812
Web page: http://www.socialsciences.manchester.ac.uk/disciplines/economics/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dahalan, Jauhari & Sharma, Subhash C. & Sylwester, Kevin, 2005. "Divisia monetary aggregates and money demand for Malaysia," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1137-1153, January.
- Spencer, Peter, 1997. "Monetary integration and currency substitution in the EMS: The case for a European monetary aggregate," European Economic Review, Elsevier, vol. 41(7), pages 1403-1419, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.