Nous etudions, a l'aide d'un modele theorique simple, les effets d'une regidite nominale du taux d'interet, liee a la tres forte progression de la demande de monnaie lorsque le taux d'interet nominal approche d'un niveau seuil.

W. A. Barnett originated the Divisia monetary aggregates, using Diewert's results on superlative index numbers and Barnett's derivation of the user cost of monetary asset services. The resulting Divisia index can be interpreted as a first moment aggregating over growth rates with expenditure...

This paper extends the literature on interest-free banking systems by modeling money demand equations for Iran which has followed the profit-sharing scheme since the mid-1980s. Using quarterly data spanning the period 1966-2001, we estimate two alternative demand equations for M1 and...

I. Introduction II. Time Inconsistency III. The Origins of Financial Crises IV. The Nature of Financial Crises V. Emerging Bond Markets VI. National Economic Policy Proposals VII. International Economic Policy Proposals VIII. Alternative Monetary Rules IX. Conclusions

The high degree of economic integration has led to an increased degree of currency substitution in the EU countries, which could bring instability in national money demand functions while an EU-wide money demand function could be more stable. Currency substitution usually takes the form of cross...

The transmission process from policy-controlled interest rates to bank lending rates deserves reconsideration owing to the implementation of the European Monetary Union (EMU) in 1999. Additional attention to the subject in Austria is due to several large banks which, in 2002, have been charged...

This paper analyzes Austrian and euro area opinion polls to assess the Austrian public’s views about the single currency five years after the introduction of euro cash. The analysis focuses on the following questions: How are Austrians managing with the euro now? How do Austrians assess the...

This paper compares responses to monetary shocks in the EMU countries (in the pre-EMU sample) and in the New Member States (NMS) from Central Europe. The small-sample problem, especially acute for the NMS, is mitigated by using a Bayesian estimation procedure which combines information across...

A time-varying natural rate of interest is estimated for the euro area using a multivariate unobserved components model. The problem of aggregating interest rate data for the pre-EMU period is directly addressed, and a simple method in order to adjust the risk premia in the interest rate data...

Observers have relied increasingly on simple reaction functions, such as the Taylor rule, to assess the conduct of monetary policy. Applying this approach to deflationary or near-zero inflation environments is problematic, however, and this paper examines two shortcomings of particular relevance...