The Implications of Cross-Border Monetary Aggregation
Summary:
Some recent studies suggest the possibility of estimating a stable aggregate demand-for-money relationship for the group of countries participating in the European Monetary System. These results are of particular relevance in connection with the task of setting policy targets for a European Central Bank. This paper uses a theoretical error-invariables framework to identify what is gained and what may be lost through cross-border aggregation of money demand. It provides an analytical basis for such studies, paying particular attention to currency substitution and international portfolio diversification.
Series:
Working Paper No. 1992/071
Subject:
Currencies Demand for money Dollarization Monetary policy Money National accounts National income Personal income
Notes:
This paper uses a theoretical error-invariables framework to identify what is gained and what may be lost through corss-border aggregation of money demand.
English
Publication Date:
September 1, 1992
ISBN/ISSN:
9781451959789/1018-5941
Stock No:
WPIEA0711992
Pages:
22
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