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The Sectoral Distribution of Money Supply in the Euro Area
Ferrero, Giuseppe; Nobili, Andrea; Passiglia, Patrizia - 2007
The strong and prolonged deviation of money growth from its reference value since 2001 has caused concern among policy-makers about the upside risks to price stability from monetary developments. In this paper we provide evidence that these risks might be smaller than previously assumed. We...
Persistent link: https://www.econbiz.de/10014050377
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Measuring the Underground Economy with the Currency Demand Approach : A Reinterpretation of the Methodology, with an Application to Italy
Ardizzi, Guerino - 2012
dependent variable in the money demand equation a direct measure of the value of cash transactions: the flow of cash withdrawn … from current accounts relative to total non-cash payments. This avoids use of the Fisher equation and so overcomes two … larger aggregate of the unobserved economy and represents a significant component of total cash payments. We then propose an …
Persistent link: https://www.econbiz.de/10013106588
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Shoe-Leather Costs in the Euro Area and the Foreign Demand for Euro Banknotes
Calza, Alessandro - 2016
banknotes abroad. While we find evidence of marginally negative shoe leather costs for very low nominal interest rates, our … that, despite the increased circulation of euro banknotes abroad, inflation tax is still predominantly borne by domestic …
Persistent link: https://www.econbiz.de/10012999060
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Economic (In)Stability Under Monetary Targeting
Sessa, Luca - 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/10013107389
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Currency Demand at Negative Policy Rates
Rainone, Edoardo - 2022
Following the implementation of negative policy rates, interest rates on bank deposits reached their historic lows, with values close or equal to zero. This paper investigates the implications of such a new environment for the demand of currency. We find evidence of a structural break in the...
Persistent link: https://www.econbiz.de/10013305708
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Sectoral Money Demand and the Great Disinflation in the US
Calza, Alessandro - 2011
Estimates of the welfare costs of inflation based on Bailey's (1956) methodology are typically computed on the basis of aggregate money demand models. Yet, the behavior of money demand is likely to vary across sectors. As a result, the impact on welfare of changes in the inflation regime may...
Persistent link: https://www.econbiz.de/10013125759
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Nonlinearities in the Dynamics of the Euro Area Demand for M1
Calza, Alessandro - 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/10012722788
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Welfare Costs of Inflation and the Circulation of US Currency Abroad
Calza, Alessandro - 2015
Empirical studies of the shoe-leather costs of inflation are typically computed using M1 as a measure of money. Yet, official data on M1 includes all currency issued, regardless of the country of residence of the holder. Using adjusted monetary data, we show that the failure to control for...
Persistent link: https://www.econbiz.de/10013037484
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Disentangling Demand and Supply in Credit Developments : A Survey-Based Analysis for Italy
Del Giovane, Paolo - 2010
This paper combines qualitative information from the Eurosystem Bank Lending Survey with micro-data on loan prices and quantities for the participating Italian banks to assess the role of supply and demand factors in credit developments, with a focus on the sharp slowdown of 2008-09. Both demand...
Persistent link: https://www.econbiz.de/10013136542
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Credit Supply, Flight to Quality and Evergreening : An Analysis of Bank-Firm Relationships after Lehman
Albertazzi, Ugo - 2010
This paper analyzes the effects of the financial crisis on credit supply by using highly detailed data on bank-firm relationships in Italy after Lehman's collapse. We control for firms' unobservable characteristics, such as credit demand and borrowers' risk, by exploiting multiple lending. We...
Persistent link: https://www.econbiz.de/10013138576