Cross-Border Deposits and Monetary Aggregates in the Transition to EMU

Ignazio Angeloni (), Aviram Levy and Carlo Cottarelli

No 1991/114, IMF Working Papers from International Monetary Fund

Abstract: This paper discusses the effect of cross-border deposits (CBDs) for the stability of the relation between monetary aggregates and nominal GDP in the five largest EC countries. The analysis is developed in terms of “information content” of alternative money definitions (including or excluding selected subsets of CBDs), derived from a multicountry simultaneous system of money demand equations. We show that in the most recent period traditional money aggregates have lost information value and that they are dominated by alternative money definitions that include CBDs, such as those based on the residency of the holder or on the currency of denomination.

Keywords: WP; money demand; foreign currency; monetary policy; correlation coefficient; standard error; stock definition; aggregate broad money money stock; money stock statistic; income equation; narrow money definition; Monetary aggregates; Monetary base; Demand for money; Currencies; Personal income; Europe (search for similar items in EconPapers)
Pages: 60
Date: 1991-11-01
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=990 (application/pdf)

Related works:
Working Paper: Cross-Border Deposits and Monetary Aggregates in the Transition to EMU (1992)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1991/114

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().