EconPapers    
Economics at your fingertips  
 

Constructing Divisia Monetary Aggregates for the Asian Tigers

William Barnett, JoonSoo Lee and Naowar Mohiuddin
Additional contact information
JoonSoo Lee: Department of Economics, University of Kansas, Lawrence, KS 66045, USA
Naowar Mohiuddin: Department of Economics, University of Kansas, Lawrence, KS 66045, USA

No 202413, WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS from University of Kansas, Department of Economics

Abstract: This study constructs Divisia monetary aggregates for the "Asian Tigers"—Hong Kong (1999-2024), South Korea (2009-2024), Singapore (1991-2021), and Taiwan (2005-2024)—and assesses whether Divisia monetary aggregates explain nominal GDP better than simple-sum money. Our findings demonstrate that Divisia indices respond more sensitively to economic shocks. For Hong Kong and Taiwan, narrow Divisia money provides the best explanations for fluctuations in nominal GDP. Our results suggest that Divisia monetary aggregates can be beneficial for monetary policy analysis in these countries and underscore the importance of further research into the empirical performance of Divisia monetary aggregates in macroeconomic prediction.

Keywords: divisia index; divisia monetary aggregates; vector error-correction model (search for similar items in EconPapers)
Date: 2024-09
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon and nep-sea
References: Add references at CitEc
Citations:

Downloads: (external link)
https://kuwpaper.ku.edu/2024Papers/202413.pdf (application/pdf)

Related works:
Journal Article: Constructing Divisia Monetary Aggregates for the Asian Tigers (2024) Downloads
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:kan:wpaper:202413

Access Statistics for this paper

More papers in WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS from University of Kansas, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Professor Zongwu Cai (caiz@ku.edu).

 
Page updated 2024-12-24
Handle: RePEc:kan:wpaper:202413