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Multilateral Divisia Monetary Aggregates for the Euro Area

Author

Listed:
  • William A. Barnett

    (Department of Economics, University of Kansas and Center for Financial Stability, New York City)

  • Neepa Gaekwad

    (State University of New York at Fredonia)

Abstract

In light of the "two-pillar strategy" of the European Central Bank, good measures of aggregated money across countries in the Euro area are policy relevant. The objective of this paper is to focus on the multilateral Divisia monetary aggregates for the Euro area to produce a theoretically consistent measure of monetary services for the Euro area monetary union. Based on theory developed in Barnett (2007), the multilateral Divisia monetary aggregates for 17 Euro area countries are found to provide a better signal of recession, when compared to the corresponding simple sum monetary aggregates.

Suggested Citation

  • William A. Barnett & Neepa Gaekwad, 2021. "Multilateral Divisia Monetary Aggregates for the Euro Area," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 202108, University of Kansas, Department of Economics, revised Jan 2021.
    • Handle: RePEc:kan:wpaper:202108
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Divisia Index; European Union; European Monetary Union; Monetary aggregation.;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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