The aim of this note is to provide an overview of various measures of excess liquidity, which can be defined as the deviation of the actual stock of money from an estimated equilibrium level. Given their dynamic nature, the excess liquidity measures under review are - in the light of long and...

Monetary policies of the ECB and US Fed can be characterised by Taylor rules, that is both central banks seem to be setting rates by taking into account the output gap and inflation. We also set up and tested Taylor rules which incorporate money growth and the euro-dollar exchange rate, thereby...

One major outcome of the review of the ECBs two pillar monetary policy strategy, which was published on 8 May 2003, has been the de facto downgrading of the hitherto prominent role assigned to the stock of money. According to the authors judgement, however, there is a strong theoretical and...

The rate of growth in bank loans to private households and firms in Germany has declined substantially since early 2000 and currently stands at virtually zero. In this article, we analyse whether cyclical factors ('demand-side driven') or banks' unwillingness and/or inability to lend...

One major outcome of the review of the ECB's 'two pillar monetary policy strategy', which was published on 8 May 2003, has been the de facto downgrading of the hitherto prominent role assigned to the stock of money. According to the authors' judgement, however, there is a strong theoretical and...

Monetary policies of the ECB and US Fed can be characterised by Taylor rules, that is both central banks seem to be setting rates by taking into account the output gap and inflation. We also set up and tested Taylor rules which incorporate money growth and the euro-dollar exchange rate, thereby...

The aim of this note is to provide an overview of various measures of excess liquidity, which can be defined as the deviation of the actual stock of money from an estimated equilibrium level. Given their dynamic nature, the excess liquidity measures under review are - in the light of long and...

Anfang Mai dieses Jahres werden die Länder ausgewählt, die ab dem 1. Januar 1999 an der dritten Stufe der Europäischen Währungsunion teilnehmen werden, und gleichzeitig die bilateralen Zielparitäten zwischen den beteiligten Währungen verkündet. Die Entscheidung für diese frühzeitige...

Seit 2001 trat im Euro-Raum ein starkes Geldmengenwachstum auf, dem kein entsprechender Verbraucherpreisauftrieb folgte. Ist die Geldmenge als Steuerungsinstrument der Geldpolitik obsolet geworden? Auf welchem geldpolitischem Konzept sollte die Strategie der Europäischen Zentralbank basieren?

We turn our attention to the role of money for determining nominal magnitudes. Using US data, we find that the aggregate 'nominal output plus and stock market capitalisation' is closely related to the money stock, lending support to one of Milton Friedman's key monetarist propositions. This...