Monetary aggregates, their information content and their aggregation error: Some preliminary findings for Austria, 1965-1980

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  • University of Innsbruck


In this paper we use information theory to assess the indicator quality, in the Austrian economy, of various monetary aggregates. In addition to simple sum aggregates we utilise discrete Divisia quantity indices, which have reputable aggregation and statistical attributes. Without using a particular macro-economic model we estimate the expected information gains, with respect to various policy objectives like inflation, real growth and unemployment, derived from monitoring various monetary aggregates. Finally, we compare the empirical results derived for Austria with those provided in earlier studies, using UK and United States data.


Original languageEnglish
Pages (from-to)13-25
Number of pages13
JournalEmpirical Economics
Issue number1
Publication statusPublished - 1 Mar 1985