Money Demand in Europe

1. Front Matter

   Pages I-X

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2. Methodological studies

   1. Exogeneity, causality, and co-breaking in economic policy analysis of a small econometric model of money in the UK

      • David F. Hendry, Grayham E. Mizon

      Pages 1-28

   2. Empirical modeling of money demand

      • Neil R. Ericsson

      Pages 29-49

3. Single country studies

   1. Stability of the demand for M1 and harmonized M3 in Finland

      • Antti Ripatti

      Pages 51-71

   2. The demand for broad money in Norway, 1969–1993

      • Øyvind Eitrheim

      Pages 73-88

   3. The stability of German money demand: Not just a myth

      • Michael Scharnagl

      Pages 89-104

   4. A money demand system for German M3

      • Helmut Lütkepohl, Jürgen Wolters

      Pages 105-120

   5. Money demand stability: Evidence from Spain

      • Juan Luis Vega

      Pages 121-134

   6. Friedman and Schwartz (1982) revisited: Assessing annual and phase-average models of money demand in the United Kingdom

      • Neil R. Ericsson, David F. Hendry, Kevin M. Prestwich

      Pages 135-149

   7. Broad money demand and financial liberalization in Greece

      • Neil R. Ericsson, Sunil Sharma

      Pages 151-170

   8. Stability of money demand in Switzerland: A comparison of the M2 and M3 cases

      • Michel Peytrignet, Christof Stahel

      Pages 171-188

4. Multi-country studies

   1. Changing monetary transmission mechanisms within the EU

      • Katarina Juselius

      Pages 189-215

   2. Long run money demand in the EU: Evidence for area-wide aggregates

      • Gabriel Fagan, Jérôme Henry

      Pages 217-240

   3. Wealth and the demand for money in the European Union

      • Martin M. G. Fase, Carlo C. A. Winder

      Pages 241-258

5. Back Matter

   Pages 259-260

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In 1999 a number of member states of the European Union will adopt a common currency. This change in the monetary system requires that a Eur­ opean Central Bank is set up and a common monetary policy is pursued. There is general agreement among those countries which are likely to join the common currency that price level stability has to be the ultimate objec­ tive of monetary po1icy. It is an open issue, however, what kind of policy is best suited for that purpose. The alternative strategies under discussion are a direct inflation targeting, an intermediate monetary targeting or a mixture of both. For these policy strategies a stable money demand relation is of cen­ tral importance. Therefore a workshop on Money Demand in Europe was organized at the Humboldt University in Berlin on October 10/11, 1997. This research conference brought together academic and central bank econo­ mists and econometricians predominantly from Europe to discuss issues on specification, estimation and, in particular, stability of money demand rela­ tions both in a single equation and in a systems framework. In this volume revised versions of the papers presented and discussed at the workshop are collected. The volume thereby gives an overview of money demand analysis in Europe on the eve of the introduction of the Euro in some European countries. It contributes to the discussion on a suitable monetary policy for the new European Central Bank.

• Direct Inflation Targeting
• Euro
• Euro Currency
• Euro-Währung
• European Central Bank
• European Union (EU)
• Europäische Zentralbank
• Geldnachfrage
• Inflation
• Money Demand

• Institut für Statistik und Ökonometrie Wirtschaftswissenschaftliche Fakultät, Humboldt-Universität zu Berlin, Berlin, Germany

  Helmut Lütkepohl

• Institut für Statistik und Ökonometrie Fachbereich Wirtschaftswissenschaft, Freie Universität Berlin, Berlin, Germany

  Jürgen Wolters

Policies and ethics