inception of the euro. We derive a money demand equation that incorporates housing wealth and collateral as well as substitution … effects on real money holdings. Empirically, we show that cross-country differences in real balances are determined not only … by income differences, a standard determinant of money demand, but also by house price developments. Higher house prices …

The European Central Bank has assigned a special role to money in its two pillar strategy and has received much … criticism for this decision. The case against including money in the central bank's interest rate rule is based on a standard … decades. In this paper, we develop a justification for including money in the interest rate rule by allowing for imperfect …

monetary aggregates to a one-off monetary policy shock. We find that - as theory suggests - money growth is dampened by a … caused by the rise in the short-term interest rate. This has consequences for the interpretation of money growth as an input …

The instability of standard money demand functions has undermined the role of monetary aggregates for monetary policy … instability of euro area money demand. Our results obtained from panel estimation indicate that the observed instability of … standard money demand functions could be explained by omitted variables like e.g. technological progress that are important for …

This paper analyses the relationship between the prevailing liquidity conditions (such as measures of money, credit and …

The instability of standard money demand functions has undermined the role of monetary aggregates for monetary policy … instability of euro area money demand. Our results obtained from panel estimation indicate that the observed instability of … standard money demand functions could be explained by omitted variables like e.g. technological progress that are important for …

models currently used for macroeconomic analysis exclude money or else model money demand as entirely endogenous …. Nevertheless, academic research and many textbooks continue to use the money multiplier concept in discussions of money. We explore … the institutional structure of the transmission mechanism beginning with open market operations through to money and loans …