On the recent divergence between measures of the money supply in the UK

Bruce Rayton and Khrystyna Pavlyk

Economics Letters, 2010, vol. 108, issue 2, 159-162

Abstract: This paper presents evidence that the traditional high correlation between simple sum and Divisia monetary aggregates in the United Kingdom has broken down during the economic crisis. This divergence, coupled with the differential diagnostic values of these measures of money in the past, means that current debates about the appropriate stance of monetary policy should first consider what they regard as an appropriate measure of the money supply.

Keywords: Measurement; Monetary; aggregates; Simple; sum; method; Divisia (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:108:y:2010:i:2:p:159-162

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