|
| |
| Neepa Gaekwad and William Barnett |
| |
| ''Multilateral Divisia monetary aggregates for the Euro area'' |
| ( 2024, Vol. 44 No.3 ) |
| |
| |
| 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. Based on theory developed in Barnett (2007), this paper produced the multilateral Divisia monetary aggregates for the economic union of all the 19 Euro area countries, EMU-19, (and the Divisia monetary aggregates for the individual 19 Euro area countries), which is a theoretically consistent measure of monetary services for the Euro area monetary union. The multilateral Divisia monetary aggregate indices for EMU-19 is found to provide a better signal of recession, when compared to the corresponding simple sum monetary aggregates. |
| |
| |
| Keywords: Divisia Index, European Union, European Monetary Union, Monetary aggregation |
JEL: C8 - Data Collection and Data Estimation Methodology; Computer Programs: General
E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General |
| |
| Manuscript Received : Feb 21 2023 | | Manuscript Accepted : Sep 30 2024 |
|
