Last edited by Kazigal
Wednesday, July 22, 2020 | History

4 edition of The demand for money in Canada and the control of monetary aggregates found in the catalog.

The demand for money in Canada and the control of monetary aggregates

White, William R.

The demand for money in Canada and the control of monetary aggregates

evidence from the monthly data

by White, William R.

  • 114 Want to read
  • 34 Currently reading

Published by Publications Committee of the Bank of Canada in [Ottawa] .
Written in English

    Places:
  • Canada
    • Subjects:
    • Money -- Canada -- Mathematical models.,
    • Monetary policy -- Canada -- Mathematical models.

    • Edition Notes

      Statementby William R. White.
      SeriesStaff research studies - Bank of Canada ; 12
      Classifications
      LC ClassificationsHG655 .W46
      The Physical Object
      Paginationxi, 157 p. ;
      Number of Pages157
      ID Numbers
      Open LibraryOL4605836M
      LC Control Number77369087

        Money Supply and Monetary Policy In the present day, money is a very basic requirement for carrying out exchange of goods and services in a particular market or a country or a particular socio-economical setup. That means there is a continuous demand of money to fulfil the needs of the populace for carrying out trade and commerce. A stable money demand: Looking for the right monetary aggregate Introduction and summary The stability of a money demand relationship has been a major concern in monetary economics for the last 50 years. It is conventional to call the relation ship between real money, a nominal interest rate, and a measure of economic activity a money demand.

        Money Demand and Supply Shocks. The easiest money demand shock to consider is to assume that suddenly people decide to carry more cash in their pockets. Given the monetary base, an increase in currency holding leads to a one-for-one reduction in the reserves available to the banking system, resulting in a decline in bank loans. The demand for money in Canada and the control of monetary aggregates: Evidence from the monthlydata, (). The demand for money: theories and evidence. 2nd : Charles Freedman.

      In addition, those economists seeing the central bank's control over the money supply as feeble say that there are two weak links between the growth of the money supply and the inflation rate. First, in the aftermath of a recession, when many resources are underutilized, an increase in the money supply can cause a sustained increase in real production instead of . Downloadable! The author examines the impact of economic uncertainty on the demand for money. Using a general-equilibrium theory, he argues that in a world inhabited by risk-averse agents, who are constantly making portfolio decisions against a backdrop of macroeconomic uncertainty, the demand for money is a function of real income and interest rates, and an index of economic uncertainty.


Share this book
You might also like
Underwater survey guidance

Underwater survey guidance

Report of the cruise of the U.S. revenue cutter Bear and the overland expedition for the relief of the whalers in the Arctic Ocean, from November 27, 1897, to September 13, 1898

Report of the cruise of the U.S. revenue cutter Bear and the overland expedition for the relief of the whalers in the Arctic Ocean, from November 27, 1897, to September 13, 1898

recognition of machining features in turned components

recognition of machining features in turned components

Sportive wit

Sportive wit

Mussulman culture

Mussulman culture

Draft five year plan, 1978-83.

Draft five year plan, 1978-83.

Henry G. Salisbury.

Henry G. Salisbury.

Technical evaluation of petroleum waxes

Technical evaluation of petroleum waxes

Works by Charles E. Burchfield

Works by Charles E. Burchfield

Administration of ECO-education

Administration of ECO-education

Environmental perception and planning provision for recreation and tourism

Environmental perception and planning provision for recreation and tourism

The demand for money in Canada and the control of monetary aggregates by White, William R. Download PDF EPUB FB2

Get this from a library. The demand for money in Canada and the control of monetary aggregates: evidence from the monthly data. [William White]. M2+ (gross) plus Canada Savings Bonds and other retail instruments plus cumulative net contributions to mutual funds other than Canadian dollar money market mutual funds (which are already included in M2+ (gross)).

Recent developments in the monetary aggregates and their implications. Bank of Canada Review, Spring monetary aggregates, particularly real net M1 and gross M1, contain explanatory power for real output growth one to two quarters ahead.

At the Bank of Canada, narrow monetary aggregates expressed in real terms (i.e., deflated by a price index) 1. The goal of monetary targeting is to keep the money supply growing at a specific rate. The New Monetary Aggregates. Apostolos Serletis. Pages The Stylized Facts of the Monetary Variables.

Almost half a century has elapsed since the demand for money began to attract widespread attention from economists and econometricians, and it has been a topic of ongoing controversy and research ever since.

except where its. term demand for money cause changes in inflation. • Other models are used to assess risks to the forecasts of the M1-VECM, including simple linear indicator models based on narrow money aggregates, non-linear neural networks, and an empirical model using the broad aggregate M2++.

hen Canada abandoned money-growth targets in the early s, the monetary. Downloadable. This paper presents an empirical test of the proposition that control of a monetary aggregate will generate a rise in its test is carried out utilizing the Canadian experience of controlling Ml growth from to Section One of the paper presents evidence of the instability of the Canadian demand from Ml money since Monetarists, in general, argue that the monetary authorities can exercise effective control over the stock of money; others, especially those who share the new view of monetary theory argue that the determination of the stock of money is part of the simultaneous solution for all variables in the financial and real sectors of the economy.

aggregates to be targeted was heavily influenced by this consideration. It was anticipated that a strong relationship between growth of monetary aggregates and nominal income (hence inflation) would emerge over the medium term'.

The demand for money is the key to any reliable relationship between money and nominal Size: KB. In the United States, labels are attributed to standardized monetary aggregates: M0—Physical paper and coin M1—All of M0 plus traveler's checks and demand deposits M2—All of M1, money market shares, and savings deposits A legacy aggregate known as M3, which includes time deposits over $, and institutional funds.

out of favor in the s as the money-demand relationship became less reliable.1 However, unlike commodity money, monetary aggregates are the liabilities of banks and hence have an asset-side counterpart.

Gurley and Shaw () emphasized the distinction between “inside money,” which is a liability of an economic agent, and “outside.

a monetary aggregate target (M,).4 In an economy in which the existence of some market imperfection generates insufficient demand, the effectiveness of monetary policy depends, fundamentally, on its impact on relative prices: the interest rate.

Even if the Fed could completely control the money supply, monetary policy would have critics because. A) the Fed is asked to achieve many goals, some of which are incompatible with others.

B) the Fed's goals do not include high employment, making labor unions a critic of the Fed. As we saw, this function is a critical component in the formulation of monetary policy. Moreover, it has been argued over the years that a stable demand function for money is a necessary condition for money to exert a predictable influence on the economy so that control of the monetary aggregates can be a useful instrument of economic policy.

C) the Bank of Canada can ensure that money demand remains at the level necessary for monetary equilibrium. D) the Bank of Canada establishes a spread, into which all interest rates in the economy fall.

E) the Bank of Canada can ensure that the actual overnight interest rate will fall between these two interest rates. 7Stephen M. Goldfeld, “The Demand for Money Revisited,” Brookings Papers on Economic Activity 3 (): – 8See, for example, William R.

White, “The Demand for Money in Canada and the Control of Monetary Aggregates: Evidence from the Monthly Data.” Bank of Canada Staff Research Study12, Ottawa: Bank of Canada, The stability of the demand for money in Canada Article (PDF Available) in Journal of Monetary Economics 2(3) February with 35 Reads How we measure 'reads'.

JOSEPH ATTA-MENSAH Senior Analyst, Bank of Canada WILLIAM A. BARNETT is the originator of the Divisia Monetary Aggregates and a Fellow of the American Statistical Association K. ALEC CHRYSTAL Professor of Monetary Economics, City University Business School and is presently on leave as Research Adviser at the Bank of England ROBERT E.

The demand for money in Canada and the control of monetary aggregates: evidence from the monthly data / by William R. White.

HG W58 The floating Canadian dollar; exchange flexibility and monetary independence. 8 See, for example, William R. White, “The Demand for Money in Canada and the Control of Monetary Aggregates: Evidence from the Monthly Data,” Bank of Canada Staff Research St Ottawa: Bank of Canada, 9 Stephen M.

Goldfeld, “The Case of the Missing Money,” Brookings Papers on Economic Activity3 (): –   The first chapter tackles the functions, advantages, and definitions of money. Chapter 2 deals with the monetary transmission mechanism.

Chapter 3 discusses the demand for money, while Chapter 4 talks about the financial intermediaries and the supply of money. The book also covers the classical system and the neutrality of Edition: 2.

Digitalization on Financial Services and Implications for Monetary Policy in Thailand Thematic Study demand for money will decline by Growing use of digital money could lessen central bank’s ability to control money supply under monetary targeting framework.Byhowever, evidence about the declining significance of monetary growth (in the form of a sharp fall in velocity) combined with evidence about the authorities’ inability anyway to control the aggregates and monetary targeting acquired a lower profile in the second half of the s as attention was switched to the exchange by: 2.

The Efficacy of Monetary Rules for LDCs Recent Evolution of Monetary Policy in India List of Recommended Readings III. Implementation of Monetary Policy: Instruments and Techniques 1. Monetary Aggregates (a) Definition of Money (b) Demand for Money (c) Money Supply Process (d) Instruments of Control 2.

Other Policy Instruments (a) Interest RatesBook Edition: 1.