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The real interest parity (RIP) condition combines two cornerstones in international finance, uncovered interest parity (UIP) and ex ante purchasing power parity (PPP). The extent of deviation from RIP is therefore an indicator of the lack of product and financial market integration. This paper...
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This paper explores the stability of the relation between money demand for M3 and inflation in the euro area by …
Persistent link: https://www.econbiz.de/10009427840
This paper explores the stability of the relation between money demand for M3 and inflation in the euro area by …
Persistent link: https://www.econbiz.de/10009130684
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Since the outbreak of the Corona virus, policymakers around the globe introduced numerous emergency measures such as the wearing of masks, restrictions to mobility and travel and the shutdown of large parts of the economy, including firms, workplaces and schools. The implementation of...
Persistent link: https://www.econbiz.de/10013334717
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Money growth in the euro area has exceeded its target since 2001. Likewise, recent empirical studies did not find …) estimation methods. To obtain the result, the short run homogeneity restriction between money and prices is relaxed. In addition …, a rise in the income elasticity after 2001 is taken into account. The break might be linked to the introduction of euro …
Persistent link: https://www.econbiz.de/10003726115