Alves, Nuno; Marques, Carlos Robalo; Sousa, João - Banco de Portugal - 2007
This paper reassesses the role of the M3 aggregate for monetary policy purposes in the euro area. Using data until 2006Q4 it is shown that the M3 aggregate ceased to display the empirical properties that supported its prominent role in the ECB’s monetary policy strategy. On the one hand, when...
