The Implications of Cross-Border Monetary Aggregation

Author/Editor:

Timothy D. Lane ; Jeroen J. M. Kremers

Publication Date:

September 1, 1992

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:

Some recent studies suggest the possibility of estimating a stable aggregate demand-for-money relationship for the group of countries participating in the European Monetary System. These results are of particular relevance in connection with the task of setting policy targets for a European Central Bank. This paper uses a theoretical error-invariables framework to identify what is gained and what may be lost through cross-border aggregation of money demand. It provides an analytical basis for such studies, paying particular attention to currency substitution and international portfolio diversification.

Series:

Working Paper No. 92/71

Subject:

Notes:

This paper uses a theoretical error-invariables framework to identify what is gained and what may be lost through corss-border aggregation of money demand.

English

Publication Date:

September 1, 1992

ISBN/ISSN:

9781451959789/1018-5941

Stock No:

WPIEA0711992

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

22

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