The lag procedures of Solow, var Alphen and Merkies and Maddala and Rao based on the Pascal distribution with a full range of the lag weights from zero to infinity can not detect the relevant (optimal) lag duration. Allowing truncation of the Pascal distribution and using the search process of...

The available concepts of an extended monetary base are seriously defective. They provide equal measurements for differently sized impulse forces of monetary policy and different measurements for equally sized impulse forces of monetary policy. A new concept is suggested that allows to avoid...

To deal with changes of capitalized seignorage due to EMU, we supply the still missing capital-theoretical framework. We show that seignorage pooling of EMU is composed of two components, a dynamic component and a static component. By its dynamic component, the pool provides insurance against...

The hypothesis of the paper that the European money demand function is more stable than the money demand function of any single European country is based on the well known portfolio diversification principle. Econometric estimates of country specific and European money demand functions confirm...

The current discussion about stability of the European money demand function is flawed by a confusion of two different concepts of stability (adjustment speed versus error variance). The meaning and importance of the underlying notions of stability is clarified. It is demonstrated that necessary...