The demand for money in the Netherlands and the other EC countries

Fase, M.M.G.; Winder, C.C.A.

doi:10.1007/bf02375168

Cited by 61 publications

(15 citation statements)

References 16 publications

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“…In line with the expected liquidity effect, and consistent with the literature on the money demand in the euro area (see Fase and Winder (1993) and Giannone et al (2009) among others), in Model 3 the broad monetary aggregate declines after the shock. In other words, our framework is not affected by the liquidity puzzle, occurring when an interest rate tightening is associated with an increase in the broad monetary aggregate (see, for example, Reichenstein 1987), and Leeper and Gordon (1991)).…”

Section: Robustness Analysissupporting

confidence: 88%

Monetary Policy and the Flow of Funds in the Euro Area

Bonci

2012

SSRN Journal

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Section: Robustness Analysissupporting

confidence: 88%

Monetary Policy and the Flow of Funds in the Euro Area

Bonci

2012

SSRN Journal

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“…This regularity is also present in other countries and also found in earlier studies. For instance Fase and Winder (1993) find that for all EC countries the residual standard error in the M3 equations is smaller than in the M1 and M2 equations.…”

Section: N-81mentioning

confidence: 83%

“…Examining residual errors has been popular for some time too and e.g. Fase and Winder (1993) employed this approach to examine the relative stability of money demand in Germany and The Netherlands (or the Benelux countries). However, a very natural way to proceed on this issue is perhaps just to study estimation results drawn from various research fields, i.e.…”

Section: Resultsmentioning

confidence: 99%

In search for stability: An empirical appraisal of the demand for money in the G7 and EC countries

Fase

1994

De Economist

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The demand for money has been at the centre of monetary econometrics. The demand for money research focuses on the factors determining money-holding behaviour of the private sector of the economy. Knowledge of this reaction pattern is of great importance for assessing the effectiveness of monetary policy or the impact of monetary or other shocks. However, views on this matter differ widely. On the one hand, there is a general approach, focusing on the monetary climate, which regards monetary ease or tightness as the main driving force without specifying the nature of the underlying transmission process. On the other hand, a more specific approach is discernible, which regards all changes in money-holding behaviour, or, in other words the reaUocation within the range of components of wealth, as the most important channel for spending effects.The demand for money is a well-explored field of monetary econometrics. Against that background and in view of the traditionally ample availability of data to examine the various theoretical views empirically, this is not surprising. Moreover, research on the demand for money conducted in the recent past has been an important source of inspiration for innovations in both monetary theory and econometric technique. This has resulted in an abundant flow of interesting empirical research on the demand for money covering many countries and regions. This survey aims at presenting an inventory and assessing these innovative activities from the viewpoint of monetary policy. It focuses on four aspects in particular. The first is the evolution of the theory of the demand for money, of which a brief survey is presented. The second is a summary of empirical studies carried out since 1970. Because virtually all recent surveys of money demand research -see e.g. , Goldfield and Sichel (1990) or Boughton (1992) -focus primarily on the US, the present survey, following Fase and Kun6 (1974, p. 344-345;1975) for the 1960s and before, broadens the perspective by including the G7 and EC countries in particular. The third aspect concerns the most important theoretical and methodological lessons to be

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“…One approach to analyse the national differences in the transmission of monetary policy has been presented by Fase and Winder (1993) who compare national money demand relations across European countries. They find lower sensitivity of money demand to interest rate and inflation changes in the southern than in the northern EC countries.…”

Section: Introductionmentioning

confidence: 99%

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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The demand for money in the Netherlands and the other EC countries

Cited by 61 publications

References 16 publications

Monetary Policy and the Flow of Funds in the Euro Area

Monetary Policy and the Flow of Funds in the Euro Area

In search for stability: An empirical appraisal of the demand for money in the G7 and EC countries

Monetary transmission in Germany: Lessons for the Euro area

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