This position paper is divided into three parts. In the first part an analysis is present indicating the extent to which various forces have affected the growth of M1 since last November. (At the time of this writing August data are not yet available. I expect that the analysis can be updated to...

At a quick glance, the behavior of various monetary aggregates in the recent past is quite bewildering. Since the beginning of 1991 (through June, 1992) Ml has grown at an annual rate of 10.5 percent, the adjusted monetary base at an annual rate of 7.8 percent, adjusted reserves at an annual...

The Shadow Open Market Committee has traditionally summarized its monetary-policy advice in a recommended rate of growth of the monetary base. However, since the Shadow Open Market Committee meeting in the spring of 1991, our recommendation has deemphasized the base because rapid growth in...

Arguments are developed concerning a number of topics including long-run monetary neutrality, superneutrality, the natural-rate hypothesis, the quantity theory of money, the equation of exchange, the Fisher equation, and purchasing power parity. These are basic, fundamental topics that all...

This paper reports results of a test of money demand and supply as predicted by recent studies applied to small economies with greater openness to external factors. These results suggest that the short- and long-run money balances are determined by both the interest rate policies as well as the...

Late in 1982, the growth of the money supply (MI) accelerated sharply while nominal GNP growth declined. The ratio of GNP to MI is refereed to as the "income velocity of money" and the inverse of velocity is the "demand for money." So when income growth slowed while money growth increased, it...

This paper analyses euro area non-financial corporations (NFCs) money demand, both from a macro and a microeconomic point of view. At a macro level, money holdings are modelled as a function of real gross added value, the price level, the long-term interest rate on bank lending to non-financial...

Incluye anexos estadísticos ; El propósito de este Documento de Trabajo es presentar una reconstrucción de los principales agregados monetarios para el período comprendido entre 1830, cuando se pusieron en circulación los primeros billetes bancarios modernos, y 1998, el año anterior a la...

The ECB Working Paper Series seeks to disseminate economic research on issues that are relevant to the various tasks and functions of the ECB. The Series invites submissions of research work by ECB staff and visitors. Papers by researchers not affiliated with the ECB may also be considered for...

There is a general recognition that there are deficiencies in the Mundell-Fleming model. Nonetheless, Rose [2000] has stated that Mundell was the first to exposit the Policy Trilemma, which identifies an intrinsic incompatibility among: high capital mobility, fixed exchange rates, and monetary...