Resource title

Money as an Indicator in the Euro Zone

Resource image

image for OpenScout resource :: Money as an Indicator in the Euro Zone

Resource description

This paper attempts to evaluate the information content of money for the forecast of inflation, output, investment and consumption in the euro zone. It considers M1 and M3; a number of modifications to these aggregates is also proposed to enhance their forecast performance. The evaluation employs Granger-causality tests, stability tests and historical out-of-sample forecasts. On balance the information content of money appears to be rather limited. An improvement of the forecast is confined to the real variables and to the second half of the nineties. For the first half of the nineties the forecast performance of money is generally poor.

Resource author

Willem van Zandweghe, Felipe Martinez Rico, Jan Gottschalk

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/17918

Resource license

Adapt according to the presented license agreement and reference the original author.