Kelly, Logan (2007): Measuring the Economic Stock of Money.
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Abstract
Aggregation theoretic measures of the economic stock of money (ESM) have been criticized for their dependence on future expectations. I answer some of those objections by using several forecasting methods to generate the expectations needed for calculating the ESM. I find that targeted factor model forecasting improves the accuracy of the measurement of the ESM but also that measurement of the ESM is robust to assumptions about future expectation. These findings suggest that concerns about the dependency of theoretical monetary stock aggregates on forecasted future expectations may have been overstated.
Item Type:  MPRA Paper 

Institution:  Bryant University 
Original Title:  Measuring the Economic Stock of Money 
Language:  English 
Keywords:  Monetary Aggregation; Money Stock; ; Economic Stock of Money; Targeted Factor Models 
Subjects:  E  Macroeconomics and Monetary Economics > E4  Money and Interest Rates > E49  Other C  Mathematical and Quantitative Methods > C4  Econometric and Statistical Methods: Special Topics > C43  Index Numbers and Aggregation 
Item ID:  5528 
Depositing User:  Logan Kelly 
Date Deposited:  06. Nov 2007 
Last Modified:  18. Feb 2013 20:11 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/5528 
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Measuring the Economic Stock of Money. (deposited 14. Sep 2007)
 Measuring the Economic Stock of Money. (deposited 06. Nov 2007) [Currently Displayed]