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ERM Money Supplies and the Transition to EMU / Paul Masson, Marcel Cassard, Timothy Lane.
- Format:
- Book
- Government document
- Author/Creator:
- Masson, Paul.
- Series:
- IMF Working Papers; Working Paper ; No. 1994/001
- IMF Working Papers
- Language:
- English
- Physical Description:
- 1 online resource (42 pages)
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 1994.
- Language Note:
- English
- Summary:
- Stage 2 of monetary union in the Europe is to involve greater monetary cooperation; the paper examines the case for using the M3 money supply aggregated across “core ERM” countries- -those with low inflation and absence of realignments- -as a vehicle for that cooperation. First, the existence of a satisfactory long-run money demand relationship and short-run dynamic equation is verified. The resulting demand equations have at least as satisfactory econometric properties as those for France and Germany separately. Second, the predictive power of the core-ERM aggregate relative to French and German inflation is examined; it is shown that the aggregate helps to predict German inflation, over and above the predictive power of German M3. Thus, core-ERM M3 has value as an indicator for the anchor country in hitting its own domestic objective, quite separate from any concern about economic developments in neighboring countries.
- Notes:
- Bibliographic Level Mode of Issuance: Monograph
- Description based on print version record.
- ISBN:
- 9786613776358
- 9781462369287
- 1462369286
- 9781455252459
- 145525245X
- 9781281104892
- 1281104892
- 9781455259410
- 1455259411
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