Divisia monetary aggregates for Brazil

Herein we review the methodology for constructing monetary aggregates using Divisia weights. Divisia monetary aggregates (M2, M3, and M4) were then calculated with both monthly and quarterly data for the period Jan. 1980-Aug. 1998 and were found to have a better general performance than the correspo...

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Detalles Bibliográficos
Autor: Rossi, Jose W.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2000
País:Brasil
Institución:Universidade de São Paulo (USP)
Repositorio:Economia Aplicada
Idioma:inglés
OAI Identifier:oai:revistas.usp.br:article/218801
Acceso en línea:https://www.revistas.usp.br/ecoa/article/view/218801
Access Level:acceso abierto
Palabra clave:divisia aggregates
monetary aggregates
monetary services
monetary stock
money and prices
monetary multipliers
Descripción
Sumario:Herein we review the methodology for constructing monetary aggregates using Divisia weights. Divisia monetary aggregates (M2, M3, and M4) were then calculated with both monthly and quarterly data for the period Jan. 1980-Aug. 1998 and were found to have a better general performance than the corresponding traditional monetary aggregates constructed by the simple-sum of assets. This was so according to the following criteria: a) a better goodness-of-fit coefficient in a regression between the inflation rate and changes in the monetary aggregate; b) a relationship between these two variables which was in most cases closer to proportionality; c) more stable monetary multipliers; and, finally, d) a higher linear correlation coefficient between income velocity and the interest rate.