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Welfare costs of inflation and the circulation of US currency abroad

Calza, Alessandro; Zaghini, Andrea - Banca d'Italia - 2011

Empirical studies of the shoe-leather costs of inflation are typically computed using M1 as a measure of money. Yet … moderate value of the inflation rate, thereby justifying a deviation from the Friedman rule in favour of the Fedï¿½s current …

Persistent link: https://www.econbiz.de/10009144907

Economic (in)stability under monetary targeting

Sessa, Luca - Banca d'Italia - 2012

Monetary growth targeting is often seen as an effective way of supporting macroeconomic stability. We scrutinize this property by checking whether multiplicity of equilibria, in the form of local indeterminacy (LI), can be both a possible and a plausible outcome of a basic model with an...

Persistent link: https://www.econbiz.de/10011099687

Bootstrap bias-correction procedure in estimating long-run relationships from dynamic panels, with an application to money demand in the euro area

Focarelli, Dario - Banca d'Italia - 2002

In dynamic panel data models, which are particularly well-suited to cross-country analysis, the Mean Group estimator (Pesaran and Smith, 1995) is under certain quite strong conditions consistent, but theoretical and empirical evidence indicates that it can be biased when the number of time...

Persistent link: https://www.econbiz.de/10005770753

Money demand in the euro area: do national differences matter?

Dedola, Luca; Gaiotti, Eugenio; Silipo, Luca - Banca d'Italia - 2001

This paper assesses the relevance of national information in estimating the demand for euro-area M3 from three perspectives. First, we check whether aggregating national money demands is appropriate. Second, we compare time-series and panel methods to estimate aggregate long-run coefficients....

Persistent link: https://www.econbiz.de/10005609347

Nonlinearities in the dynamics of the euro area demand for M1

Calza, Alessandro; Zaghini, Andrea - Banca d'Italia - 2008

The paper finds evidence of non-linearities in the dynamics of the euro-area demand for the narrow aggregate M1. A long-run money demand relationship is first estimated over a sample period covering the last three decades. While the parameters of the relationship are jointly stable, there are...

Persistent link: https://www.econbiz.de/10005113659

Did inflation really soar after the euro cash changeover? Indirect evidence from ATM withdrawals

Angelini, Paolo; Lippi, Francesco - Banca d'Italia - 2006

much sharper rise in inflation than measured by the official price indices, whose quality was called into question. In this … determinants. Since these data do not rely on official inflation statistics, they provide an independent check for the latter. We … official inflation statistics. We do not find evidence in support of this hypothesis. …

Persistent link: https://www.econbiz.de/10005609383