European Integration and the Demand for Broad Money

Monticelli, Carlo; Strauss-Kahn, Marc-Olivier

doi:10.1111/j.1467-9957.1993.tb00241.x

Cited by 35 publications

(26 citation statements)

References 23 publications

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“…studies on money demand on the European level as Monticelli and Papi (1996), Wesche (1997), Fagan and Henry (1998) and Fase and Winder (1998). Recently, Vlaar and Schuberth (1999), Monticelli and Tristani (1999) and Coenen and Vega (1999) have presented SVAR studies analysing the transmission of monetary policy for different sets of variables based on aggregated data.…”

Section: Introductionmentioning

confidence: 99%

“…1 Although the specification bias of national estimations due to the omission of relevant euro area foreign variables is avoided by aggregated analysis (see e.g. Monticelli and Papi, 1996;Pesaran, Pierse and Kumar, 1989), a bias due to differences in parameters or even functional form between national specifications is likely. This is a further argument that national and aggregated analyses should be considered complementary.…”

Section: Introductionmentioning

confidence: 99%

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Monetary transmission in Germany: Lessons for the Euro area

Hubrich

Vlaar

2004

Empirical Economics

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This study analyses the transmission of monetary policy in Germany for the EMS period in the framework of a structural vector error correction model (S-VECM). Three stable cointegration relationships are found: a money demand relation, an interest rate spread and a stationary real interest rate. Based on both contemporaneous and long-run restrictions, five structural shocks to the economy are identified.In contrast to analyses for the euro area, we find that output and inflation are not independent in the long run for Germany. In accordance with results previously found for Europe, we do not find strong support for monetary targeting for Germany. Our analysis indicates that uncertainties remain concerning the controllability of money and its usefulness as a leading indicator with respect to inflation. Stability of the money demand relationship does not seem to be problematic.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Monetary transmission in Germany: Lessons for the Euro area

Hubrich

Vlaar

2004

Empirical Economics

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“…nous pouvons également citer les travaux de Kremers et Lane (1990), Artis, BladenHovell et Zhang (1992), Monticelly et Strauss-Kahn (1993), Artis (1996), Monteccelli (1996), tullio, de Souza et giuccia (1996, Wesche (1997) et Spencer (1997.…”

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Analyse dynamique de la convergence des comportements de demande de monnaie en Europe*

Lecarpentier-Moyal

Renou-Maissant

2008

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RésuméL’objet de cet article est l’étude de la convergence structurelle des comportements de demande de monnaie dans six pays européens (Allemagne réunifiée, Espagne, France, Italie, Pays-Bas, Royaume-Uni) avant la mise en place de l’euro en 1999. Nous effectuons une analyse dynamique des changements structurels qui affectent les coefficients (élasticités ou semi-élasticités) des fonctions de demandes de monnaie nationales sur la période 1982-1997.Si des comportements hétérogènes sont observés, il peut en résulter une hausse de la dispersion des taux d’inflation des futurs pays participants, ce qui peut poser des problèmes en termes de choix de stratégie monétaire par la BCE. D’une manière générale, un processus de convergence semble à l’oeuvre mais il n’est pas achevé, l’homogénéité ayant été observée dans un seul cas (pourM2 aux Pays-Bas).

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“…Compared with our approach, this procedure has two limitations: First, it is not based on a well founded microeconomic theory of money demand; second, the CS hypothesis is assessed on the basis of a variable that is not observable, namely the expected exchange rate depreciation. The proxies used were the long-term interest rate differential in Bekx and Tullio [1989]; the dollar-ECU nominal exchange rate in Kremers and Lane [1990]; the actual exchange rate depreciation in Monticelli and Strauss-Kahn [1993]; and the dollar-ECU real exchange rate in Artis [1996]. Regardless the quality of the proxies used, it is remarkable that in all these studies the respective coefficient was found to be significant.…”

Section: Introductionmentioning

confidence: 99%

“…1 A different question is whether CS vis-à-vis the U.S. dollar remains as a potential source of instability. This question was subject to scrutiny in the first wave of estimates addressing EU-wide monetary aggregates [Bekx and Tullio, 1989;Kremers and Lane, 1990;Monticelli and Strauss-Kahn, 1993;Artis, 1996]. In this literature, CS is tested by the significance of a variable capturing the expected exchange rate depreciation in the money demand equation.…”

Section: Introductionmentioning

confidence: 99%

Currency Substitution and Money Demand in Euroland

Freitas

2006

Atl Econ J

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This paper tests the stability of the demand for money in the euro-area in the context of an open economy. A sample consisting of quarterly data covering the 1982:2Y1999:3 period is considered. The main finding is that the U.S. dollar long-term interest rate plays a significant role in the European money demand relationship. This result holds for different combinations of variables forming the vector auto-regressive system and suggests that international monetary interdependency may be an important factor influencing the ECB monetary policy. (JEL E41, E58, F41)

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European Integration and the Demand for Broad Money

Cited by 35 publications

References 23 publications

Monetary transmission in Germany: Lessons for the Euro area

Monetary transmission in Germany: Lessons for the Euro area

Analyse dynamique de la convergence des comportements de demande de monnaie en Europe*

Currency Substitution and Money Demand in Euroland

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