Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. European I Department.
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| ISBN: | 1462343791
9781462343799
1452769354
9781452769356
1282020005
9781282020009
9786613796097
6613796093
1451904789
9781451904789
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| Notes: | Includes bibliographical references (pages 27-29).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | Annotation The paper reviews the stability of long-run money demand in the euro area in the light of recent revisions to M3 data. the analysis confirms the existence of a stable long-run money demand, although the estimated equation implies a smaller equilibrium M3 growth than the European Central Bank's reference value of 4 percent. the stability of long-run money demand does not imply that the market is always in equilibrium. Indeed, it is argued that periods of disequilibrium can be long and adjustment slow. the paper shows that the difference between the low estimated equilibrium growth rate and the actual growth rate for M3 can be explained by a velocity shock, identified here as the sharp fall in equity prices in the last two years. These characteristics of the money market-summarized in the events of the last two years-would call for an alternative approach in the communication of monetary policy developments, essentially putting less emphasis on month-to-month developments in M3.
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| Other form: | Print version: Kontolemis, Zenon G. Money demand in the Euro Area. [Washington, D.C.] : International Monetary Fund, ©2002
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