The Currency Equivalent Index and the Current Stock of Money

Logan Kelly

MPRA Paper from University Library of Munich, Germany

Abstract: The currency equivalent index provides an elegant method for measuring the stock of money, but it rests upon assumptions that do not match an important characteristic of the data. Thus, it is unclear what, if anything, the CE measures. This paper attempts to answer this question by deriving the current stock of money (CSM), which is defined to be the discounted present value of the monetary service flows provided by only the current portfolio of monetary assets, and then analyzing the assumptions under which the current stock of money can be measured by the currency equivalent index.

Keywords: Currency Equilivant Index; Monetary Aggregation; Money Stock (search for similar items in EconPapers)
JEL-codes: C43 E49 (search for similar items in EconPapers)
Date: 2008-02-15
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/7270/3/MPRA_paper_7270.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:7176

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