Where simple sum and Divisia monetary aggregates part: illustrations and evidence for the United States

Michael Belongia

MPRA Paper from University Library of Munich, Germany

Abstract: Empirical studies of money continue to use the Federal Reserve's official simple sum indexes, apparently in the belief that their behavior differs little from patterns exhibited by superlative indexes of money. This paper illustrates specific periods when this assumption is refuted and offers explanations for why simple sum and superlative indexes of money are likely to move differently at economic turning points.

Keywords: Divisia monetary aggregates; index number problems (search for similar items in EconPapers)
JEL-codes: E51 E52 (search for similar items in EconPapers)
Date: 2005-03, Revised 2005-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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