Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73770
Authors: 
Carstensen, Kai
Hagen, Jan
Hossfeld, Oliver
Salazar Neaves, Abelardo
Year of Publication: 
2008
Series/Report no.: 
Ifo Working Paper 61
Abstract: 
In this paper we analyze the money demand functions of the four largest EMU countriesand of the four-country (EMU-4) aggregate. We identify reasonable and stable moneydemand relationships for Germany, France and Spain as well as the EMU-4 aggregate.For the case of Italy, results are less clear. From the estimated money demand functions,we derive both EMU-4 and country-specific measures of money overhang. We find thatthe EMU-4 overhang measure strongly correlates with the country-specific measures,particularly since the start of EMU, and is useful to predict country-specific inflation.However, it generally does not encompass country-specific money overhang measuresas predictors of inflation. Hence, aggregate money overhang is an important, but by farnot an exhaustive, indicator for the disaggregate level.
Subjects: 
Money demand
stability
money overhang
inflation forecast
JEL: 
E41
E52
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.