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

March 1, 2003

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Format: Chicago

Ewe-Ghee Lim, and Subramanian S Sriram. Factors Underlying the Definition of Broad Money: An Examination of Recent U.S. Monetary Statistics and Practices of Other Countries, (USA: International Monetary Fund, 2003) accessed September 21, 2024

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.

Subject: Bank deposits, Banking, Commercial banks, Financial institutions, Financial markets, Financial services, Monetary aggregates, Monetary base, Money, Money markets

Keywords: Africa, Bank deposits, Caribbean, Central bank, Commercial banks, Commercial paper, Customer deposit, Definitions Money, Demand deposit, Deposit holding, Deposit money bank, Euro Area, Eurodollar deposit, Financial market, Foreign currency, Media of exchange, Monetary Aggregates, Monetary base, Money market, Money markets, Nonbank thrift institutions, OFI deposit, Original maturity, Savings deposit, Transferable deposit, United Kingdom, United States, WP

Publication Details

Pages:

36
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/062
Stock No:

WPIEA0622003
ISBN:

9781451848304
ISSN:

1018-5941

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