Asset Substitution and Monetary Volatility

Jean Gauger and Harold A Black

Journal of Money, Credit and Banking, 1991, vol. 23, issue 4, 677-91

Abstract: This paper investigates the question as to whether the volatility of the monetary aggregates arises primarily from the behavior of the monetary base or the monetary multipliers. The findings indicate that the monetary multipliers are more volatile than the base, regardless of the definition of money. The multiplier is substantially more volatile than the m2 or m3 multipliers. Analysis of multiplier's component ratios indicates high volatility of individual components. However, the m2 and m3 multipliers, hence the M2 and M3 aggregates, internalize the movements of volatile individual components. Copyright 1991 by Ohio State University Press.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-2879%2819911 ... 0.CO%3B2-B&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:mcb:jmoncb:v:23:y:1991:i:4:p:677-91

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().