A new monetary aggregate

Thomas Fomby and Evan Koenig

Economic and Financial Policy Review, 1990, issue May, 15 pages

Abstract: During the past two decades, financial innovations have proceeded at a rapid pace. These innovations have altered the liquidity of some assets relative to that of others. As a result, traditional measures of the money supply may have become less reliable as measures of household liquidity. Even sophisticated measures of the money supply, such as the Divisia monetary aggregates, do not adequately adjust for the effects of changes in the payments technology. ; Koenig and Fomby propose a measure of the money supply that avoids some of the shortcomings of existing monetary aggregates. The behavior of the new measure suggests that monetary policy during the late 1970s and early 1980s was substantially less expansionary than the corresponding traditional and Divisia aggregates might lead one to believe.

Keywords: Money supply; Monetary policy (search for similar items in EconPapers)
Date: 1990
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:fip:fedder:y:1990:i:may:p:1-15

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Economic and Financial Policy Review from Federal Reserve Bank of Dallas Contact information at EDIRC.
Bibliographic data for series maintained by Amy Chapman ().