Weighted Dutch and German Monetary Aggregates: How Do They Perform as Monetary Indicators for The Netherlands

Janssen, Norbert; Kool, Clemens

doi:10.1057/9780230288232_7

Cited by 1 publication

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“…Past work on the Divisia monetary index has supported the construction of a weighted sum that is based on the degree of liquidity of each component of monetary asset. Divisia indices have been constructed by Cockerline and Murray (1981), and Serletis and King (1993) for Canada; Ishida (1984), and Ishida and Nakamura (2000) for Japan; Barnett, Offenbacher, and Spindt (1984), and Chou (1991) for the United States; Belongia and Chrystal (1991), and Spencer (1994) for the United Kingdom; Yue and Fluri (1991), and Fluri and Spoerndli (2000) for Switzerland; Lim and Martin (2000) for Australia; and Janssen and Kool (2000) for Netherlands and German. The results of these studies suggest that divisia monetary aggregates are preferred over traditional simple-sum monetary aggregates in conducting monetary policy.…”

Section: Introductionmentioning

confidence: 99%

Divisia Index Monetary Aggregates: Do they Matter for Monetary Policy in Malaysia?

Dahalan

2020

Malaysian Management Journal

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Divisia for narrowly and broadly defined monetary aggregate of a developing country Malaysia, are constructed. Unlike the Divisia for narrowly defined monetary aggregate MI, the Divisia for broader defined monetary aggregate M2 does show significant differences in both level and growth rates that signified the degree of the important and usefulness of Divisia index in formulating the monetary policy We ascertained that there exist long-run relationships between all measures of monetary aggregates in this study with inflations. By constructing dynamic error-correction models for all the alternative measures of monetary aggregates. we performed out-of-sample forecasting for three different periods. Analysis of the forecasting statistics indicates that the Divisia monetary aggregates performed better than their simple-sum counterparts in forecasting ability. We conclude that Divisia monetary aggregate namely Divisia M2, has the best forecast ability among all. As such, Divisia M2 can serve as an excellent candidate as a target or indicator in formulating the monetary policy for Malaysia.

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Section: Introductionmentioning

confidence: 99%

Divisia Index Monetary Aggregates: Do they Matter for Monetary Policy in Malaysia?

Dahalan

2020

Malaysian Management Journal

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Weighted Dutch and German Monetary Aggregates: How Do They Perform as Monetary Indicators for The Netherlands

Cited by 1 publication

References 14 publications

Divisia Index Monetary Aggregates: Do they Matter for Monetary Policy in Malaysia?

Divisia Index Monetary Aggregates: Do they Matter for Monetary Policy in Malaysia?

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