On the recent divergence between measures of the money supply in the UK
This paper presents evidence that the traditional high correlation between simple sum and Divisia monetary aggregates in the United Kingdom has broken down during the economic crisis. This divergence, coupled with the differential diagnostic values of these measures of money in the past, means that current debates about the appropriate stance of monetary policy should first consider what they regard as an appropriate measure of the money supply.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- William Barnett & Marcelle Chauvet, 2009.
"International Financial Aggregation and Index Number Theory: A Chronological Half-century Empirical Overview,"
Open Economies Review,
Springer, vol. 20(1), pages 1-37, February.
- William Barnett & Marcelle Chauvet, 2008. "International Financial Aggregation and Index Number Theory: A Chronological Half-Century Empirical Overview," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200804, University of Kansas, Department of Economics, revised Sep 2008.
- Barnett, William A. & Chauvet, Marcelle, 2008. "International Financial Aggregation and Index Number Theory: A Chronological Half-Century Empirical Overview," MPRA Paper 10242, University Library of Munich, Germany.
- Michael T. Belongia & K. Alec Chrystal, 1989.
"An admissible monetary aggregate for the United Kingdom,"
1989-007, Federal Reserve Bank of St. Louis.
- Belongia, Michael T & Chrystal, K Alec, 1991. "An Admissible Monetary Aggregate for the United Kingdom," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 497-503, August.
- Drake, Leigh & Chrystal, K Alec, 1994. "Company-Sector Money Demand: New Evidence on the Existence of a Stable Long-Run Relationship for the United Kingdom," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(3), pages 479-94, August.
- Drake, Leigh & Chrystal, K Alec, 1997. "Personal Sector Money Demand in the UK," Oxford Economic Papers, Oxford University Press, vol. 49(2), pages 188-206, April.
- Barnett, William A, 1997.
"Which Road Leads to Stable Money Demand?,"
Royal Economic Society, vol. 107(443), pages 1171-85, July.
- Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
- Barnett, William A., 1978. "The user cost of money," Economics Letters, Elsevier, vol. 1(2), pages 145-149.
- Drake, Leigh, 1996. "Relative Prices in the UK Personal Sector Money Demand Function," Economic Journal, Royal Economic Society, vol. 106(438), pages 1209-26, September.
- Barnett, William A., 1980. "Economic monetary aggregates an application of index number and aggregation theory," Journal of Econometrics, Elsevier, vol. 14(1), pages 11-48, September.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:108:y:2010:i:2:p:159-162. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.