Skip to main content
Our website will undergo scheduled maintenance on Sunday, December 17. During this time, connection to our website and some of its features may be unavailable. Thank you for your patience and we apologize for any inconvenience.
Skip to main content
SHARE   Share on Twitter Share on Facebook Share on LinkedIn Email

Weighted Monetary Aggregates As Intermediate Targets

Recent financial innovation and deregulation has resulted in a number of weighted monetary aggregates being proposed for the conduct of monetary policy. This article argues that form a policy perspective one is not solely interested in a monetary aggregate that "correctly" measures the monetary services to society but, more importantly, the aggregate should be strongly related to the ultimate goal variables of policy but not subject to feedback from these variables. Empirical tests indicates that such an aggregate can be composed if the assets in M1 and that none of the alternatives proposed show any marked superiority over the simple-sum aggregate.

Read Full Text

Subscribe to our newsletter

Follow us

Twitter logo Google Plus logo Facebook logo YouTube logo LinkedIn logo
Back to Top