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November/December 1992, 
Vol. 74, No. 6
Posted 1992-11-01

An Extended Series of Divisia Monetary Aggregates

by Daniel L. Thornton and Piyu Yue

Daniel L. Thornton and Piyu Yue discuss monetary aggregation and present an extended data series of Divisia monetary aggregates. They briefly analyze the behavior of five Divisia aggregates—M1A, M1, M2, M3, and L. Their analysis suggests that the method of aggregation is not likely to be empirically important for narrow monetary aggregates like M1A and M1 and that beyond some point, successively broader Divisia monetary aggregates are likely to behave similarly in applied work.