Factors Underlying the Definition of Broad Money : An Examination of Recent U.S. Monetary Statistics and Practices of Other Countries

Author/Editor:

Ewe-Ghee Lim ; Subramanian S Sriram

Publication Date:

March 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper examines the experiences of countries in defining monetary aggregates, particularly those countries that have undertaken substantial redefinitions. It finds that both the functional and empirical approaches are important; and that monetary definitions tend to be dynamic in nature, becoming prone to revisions whenever the current definition no longer satisfies both criteria. While countries may adhere to both approaches, monetary definitions may still vary across countries, reflecting specific institutional settings and the requirements of the empirical approach. This finding supports the approach in the IMF's Monetary and Financial Statistics Manual of not prescribing specific definitions of broad money.

Series:

Working Paper No. 03/62

Subject(s):

English

Publication Date:

March 1, 2003

ISBN/ISSN:

9781451848304/1018-5941

Stock No:

WPIEA0622003

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

36

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