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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/17732| Title: | Monetary Conditions in the Euro Area: Useful Indicators of Aggregate Demand Conditions? |
| Keywords: | E32 E52 E37 ddc:330 Monetary Conditions MCI Output Gap Konjunkturindikator Prognoseverfahren Gesamtwirtschaftliche Nachfrage Monetärer Indikator Zinsstruktur Wechselkurs Europäische Wirtschafts- und Währungsunion Schätzung EU-Staaten |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Kiel Institute for the World Economy (IfW) Kiel |
| Description: | This paper reviews the usefulness of monetary conditions in the euro area as leading indicators for aggregate demand conditions. Monetary conditions are measured with the MCI concept proposed by the Bank of Canada, and with the yield spread. A central result is that causality runs in both ways between monetary and aggregate demand conditions. The endogeneity of monetary conditions raises important implications for its role as a predictor of aggregate demand. It is shown that the information content of monetary conditions depends on the source of business cycle fluctuations and on the response of the central bank to those fluctuations. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/17732 |
| Other Identifiers: | http://hdl.handle.net/10419/17732 ppn:329087517 |
| Appears in Collections: | EconStor |
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