-augmented Divisia inside monetary aggregates to the conventional Divisia monetary aggregates, at all levels of monetary aggregation …

aggregation biases estimates of monetary policy transmission. We argue that the information mismatch between private agents and … the econometrician —the source of temporal aggregation bias —is equally important as the more studied mismatch between … policy model and show how temporal aggregation bias can exacerbate initial impulse response functions. Because our modeling …

Simple sum monetary aggregates are based on accounting conventions and have no aggregation theoretic foundations in … economic theory. In contrast, Divisia monetary aggregates are directly derived from aggregation and index number theory. Credit … assets and liabilities. However, microeconomic aggregation theory aggregates over service flows, not stocks, regardless of …