Money growth in the euro area has exceeded its target since 2001. Likewise, recent empirical studies did not find …, a rise in the income elasticity after 2001 is taken into account. The break might be linked to the introduction of euro … coins and banknotes. The monetary overhang and the real money gap do not indicate significant inflation pressures. The …

This paper examines the relevance of the Lucas critique for euro area money demand. Based on the money in the utility … results show that the Lucas critique can be refuted in case of euro area money demand for the period of quantitative easing …

This paper analyzes the recently documented instability of money demand in the euro area in the framework of a Markov … dynamics is estimated with Bayesian methods for euro area data from 1975-2003. This exercise provides support for our model and … a stable demand for M3 in the euro area. …

In this paper we examine why monetary aggregates of euro area Member States have developed differently since the … inception of the euro. We derive a money demand equation that incorporates housing wealth and collateral as well as substitution …

-time experiment shows that real M1 can improve output gap estimates for euro area data. For many periods the cyclical component of …

This study presents empirical evidence on the long-run motives for holding euro area money by focusing on the role of … shorter sample period starting in 1994. -- Euro area money demand ; wealth ; equity return ; precautionary motive …

In this paper we present an empirically stable money demand model for Euro area M3. We show that housing wealth is an …