Euro area money demand and international portfolio allocation: A contribution to assessing risks to price stability

Roberto De Santis (), Carlo Favero () and Barbara Roffia

Journal of International Money and Finance, 2013, vol. 32, issue C, 377-404

Abstract: This paper argues that a stable broad money demand for the euro area over the period 1980–2011 can be obtained by modelling cross border international portfolio allocation. As a consequence, model-based excess liquidity measures, namely the difference between actual M3 growth (net of the inflation objective) and the expected money demand trend dynamics, can be useful to predict HICP inflation.

Keywords: Euro area money demand; Inflation forecasts; Monetary policy; Portfolio allocation (search for similar items in EconPapers)
JEL-codes: E41 E44 E52 G11 G15 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (28)

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Related works:
Working Paper: Euro Area Money Demand and International Portfolio Allocation: A Contribution to Assessing Risks to Price Stability (2012)
Working Paper: Euro Area Money Demand and International Portfolio Allocation: A Contribution to Assessing Risks to Price Stability (2012)
Working Paper: Euro area money demand and international portfolio allocation: a contribution to assessing risks to price stability (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:32:y:2013:i:c:p:377-404

DOI: 10.1016/j.jimonfin.2012.04.012

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