The credit-card-services augmented Divisia monetary aggregates

William Barnett, Marcelle Chauvet, Danilo Leiva-Leon () and Liting Su

MPRA Paper from University Library of Munich, Germany

Abstract: While credit cards provide transactions services, credit cards have never been included in measures of the money supply. The reason is accounting conventions, which do not permit adding liabilities to assets. However, index number theory measures service flows and is based on aggregation theory, not accounting. We derive theory needed to measure the joint services of credit cards and money. We provide and evaluate two such aggregate measures having different objectives. We initially apply to NGDP nowcasting. Both aggregates are being implemented by the Center for Financial Stability, which will provide them to the public monthly, along with Bloomberg Terminals.

Keywords: Credit Cards; Money; Credit; Aggregation Theory; Index Number Theory; Divisia Index; Risk; Asset Pricing; Nowcasting; Indicators. (search for similar items in EconPapers)
JEL-codes: C43 C53 C58 E1 E3 E40 E41 E51 E52 E58 G17 (search for similar items in EconPapers)
Date: 2016-08-11
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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https://mpra.ub.uni-muenchen.de/73245/1/MPRA_paper_73245.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/73384/3/MPRA_paper_73384.pdf revised version (application/pdf)

Related works:
Journal Article: The Credit‐Card‐Services Augmented Divisia Monetary Aggregates* (2024)
Working Paper: The Credit-Card-Services Augmented Divisia Monetary Aggregates (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:73245

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