Abstract
In 1992 the EU monetary authorities adopted a 'harmonized' broad money aggregate. The EMI was subsequently established to promote monetary policy coordination. This paper considers how broad money aggregates might be used to guide EU monetary policy and whether a 'Euro-Divisia' monetary index might provide a better guide than a 'Euro-simple-sum' aggregate. Our findings are based on data from the UK, France and Germany. They indicate that 'Euromoney' Granger-causes 'Euro-prices' and that the EuroDivisia monetary index is a better leading indicator of 'Euroinflation' than the Euro-simple-sum monetary aggregate.
Original language | English |
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Pages (from-to) | 775-786 |
Number of pages | 12 |
Journal | Applied Economics |
Volume | 29 |
Issue number | 6 |
DOIs | |
Publication status | Published - 1 Jan 1997 |
ASJC Scopus subject areas
- Economics and Econometrics