Kelly, Logan (2007): Measuring the Economic Stock of Money.
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Aggregation theoretic measures of the capital stock of money have in the past been criticized for their dependence on future expectations. I attempt to answer some of those objections by using several forecasting methods to generate expectations needed for calculating the economic stock of money. I show that targeted factor model forecasting improves the accuracy of monetary capital stock measurements slightly. However, I also find, as has previous research, that monetary capital stock calculations are robust to assumptions about future expectation. I believe these findings tend to support the conclusion that concerns about the dependency of theoretical monetary stock aggregates on forecasted future expectations have been overstated.
|Item Type:||MPRA Paper|
|Original Title:||Measuring the Economic Stock of Money|
|Keywords:||Monetary Aggregation; Money Stoc; ; Economic Stock of Money; Targeted Factor Models|
|Subjects:||E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E49 - Other|
|Depositing User:||Logan Kelly|
|Date Deposited:||14. Sep 2007|
|Last Modified:||18. Feb 2013 19:30|
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