Work

Why has Broad Money Demand been More Stable in the Euro Area than in Other Economies? A Literature Review

Year: 2007

Type: article

Abstract: Based on a literature review, this paper investigates the reasons why broad money demand has usually been found to be more stable in the euro area than in other large economies. The paper concludes that there are three main explanations for this fact. First, in some countries outside the euro area the sources of instabilities in money demand were country-specific. Second, financial innovation appears to have had a weaker impact on money demand in the euro area than in other economies. A third explanation is that there are gains in terms of stability in aggregating the money demand of the individual euro area countries.

Source: Credit and Capital Markets – Kredit und Kapital

DOI: 10.3790/ccm.40.1.145

Authors: Alessandro Calza, João Miguel Soucasaux Meneses e Sousa

Institution: European Central Bank

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

OpenAlex ID: W1545068424