outside the euro area and to allow them to sub-frontload credit institutions having their head or registered office in their jurisdiction from 1 December 2001. Also, national central banks of the euro area [...] institutions, national central banks or dedicated exchange points. National central banks will exchange their respective national banknotes against euro free of charge at least until the end of 2012. The bulk [...] money, bonds and shares, that the “prosperous-economy explanation” of the strong dollar is wrong. In their view there is little reason to expect a country’s profit expectations to translate into the exchange
discussed.
The second section of Chapter II discusses various monetary policy strategies and their adequacy to
the Eurosystem. A monetary policy strategy is defined as the basic thrust of monetary [...] marginal lending facility and the
deposit facility. The individual instruments are described, and their effects characterised, using the
consolidated balance sheet, the "financial statement", of the
and the United States, which
aim to reduce the problems of mismatches between the duration of their assets and
liabilities. It is generally perceived that these regulatory changes will favor the [...] level, interest rates should be determined by the supply of and the
demand for loanable funds and their determinants including the production
opportunities in the economy (depending on technological [...] consider the monetary aggregates M1, M2 and MZM and construct growth rates
as well as money gaps as their difference between the actual development and
trend. And finally we take into account the stock
participants of seminars
at the Deutsche Bundesbank and the Oesterreichische Nationalbank for their valuable comments. In
particular, we would like to thank S Arz for his contributions. The opinions [...] central banks in the euro area are connected to TARGET2. There are no constraints on the size of
their balances vis-à-vis the European Central Bank that emerge from the cross-border flow of interbank [...] is again an appropriate reference country as, during the time
when both Germany and France had their national currencies, there were no major differences
between the two with regard to domestic banknote
discussed.
The second section of Chapter II discusses various monetary policy strategies and their adequacy to
the Eurosystem. A monetary policy strategy is defined as the basic thrust of monetary [...] marginal lending facility and the
deposit facility. The individual instruments are described, and their effects characterised, using the
consolidated balance sheet, the "financial statement", of the
holdings of US dollars. Central banks
also have an interest in monitoring cash developments
because of their role in operating the payment system.
If banknotes are predominantly demanded for hoarding
purposes [...] of cashed checks is available since 1978, and the time series for
debit card payments start with their introduction in 1987. Prior to these dates,
we set the value of the respective series to zero. The [...] 15Stix (2013) presents survey evidence with many respondents reporting that
they allocate part of their savings to cash.
tests are most decisive for the large denominations, where
both tests indicate
the level of real output
rises above trend. The popularity of such rules stems from their simplicity and their
good performance across a wide array of macroeconomic models. In addition, the case [...] change in the
output gap as well as to deviations of (expected) inflation and money growth from their
respective target values. Furthermore, the results suggest that the monetary policy of the
[...] mistakes in estimating the long-run relationships or that, despite the
medium-term orientation of their approach, policymakers still showed some response to
short-run fluctuations in money demand (even
cross-border chains of transactions, criminals are remarkably
adept at concealing the origin of their funds.
The goal of our paper is to shed light on the relationship between the size of the shadow [...] Segendorf's (2007) analysis of the
difference between households' incomes and the expenditures. In their view, this difference captures transactions in the
shadow economy which they find to be positively [...] unbalanced panel structure.8
The trend behavior of the variables included necessitates an analysis of their stationarity properties to determine an
appropriate specification of the empirical model. However
websites are prohibited.
In most cases authors are permitted to post their version of the
article (e.g. in Word or Tex form) to their personal website or
institutional repository. Authors requiring further [...] the participants of seminars
at the Deutsche Bundesbank and the Oesterreichische Nationalbank for their
comments. In particular, we are indebted to M. Vogel for his contribution. The
opinions expressed [...] System 2 (CIS2) of the European
Central Bank, all of the Eurosystem national central banks provide
their issuance data on a monthly basis, including the average
volume of banknotes in circulation, the volume
money supply. Instead, they adjust it to achieve a target for the interest rate, and they adjust
their interest-rate target in response to movements in output and inflation." oder etwa
Mehrling (2004
necessarily represent those of the Swiss National Bank.
Working Papers describe research in progress. Their aim is to
elicit comments and to further debate.
COPYRIGHT©
The Swiss National Bank (SNB) [...] via the internet, etc.) for
non-commercial purposes and provided that the source is menti-
oned. Their use for commercial purposes is only permitted with
the prior express consent of the SNB.
General [...] of US dollars. Central banks also have an interest in monitoring cash develop-
ments because of their role in operating the payment system. If banknotes are predominantly
demanded for hoarding purposes
specific types of
crisis (technological crisis, financial market crisis,
natural disaster) and their effects on the demand for
cash in an international context. As evidence from
the last 30 years shows [...] 1992/93, the (geo-)political crisis after the
9/11 attacks in 2001 and the Euro crisis in
2010/11. In their nature, however, these crises
were effectively confidence crises and hence
do not differ greatly [...] might
reflect precautionary motives as commer-
cial banks in these countries also quickly
increased their vault cash.19 For the US
dollar, the euro and the Swiss franc, again,
foreign non-transactional
money supply. Instead, they adjust it to achieve
a target for the interest rate, and they adjust their interest-
rate target in response to movements in output and infla-
tion.“
Der Poole‘schen Tradition
many changes are taking place quite rapidly or have already
been factored by market players into their decisions. These changes involve institutional aspects, the
operational level of the money market [...] also for persons working at
banks and other financial sector institutions who seek to deepen their knowledge of European
monetary policy.
We wish to thank Dr. Caroline Willeke of the Deutsche
They usually hold a large proportion of their money holdings as
transactions balances, using these balances mainly as a buffer, while slowly adjusting their
portfolio composition. In addition, households’ [...] cointegration relationships by the cross correlation between
their monetary overhang measures suggests that models 2-n and 4-r are quite similar in their assessment of
actual money holdings relative to equilibrium [...] cointegration relationships by the cross correlation between
their monetary overhang measures suggests that models 2-n and 4-r are quite similar in their assessment of
actual money holdings relative to equilibrium
comprise the fees, possible loss in interest income and
the cost of providing their own resources (in particular, their own time). In this section,
an overall distinction is generally only made between [...] suppliers and costs for consumers. The suppliers, in turn, must meet
their expenditure for providing payment transaction services from their earnings. In
addition to the fees which they have to pay to payment [...] the
“elasticity of demand of customers”, whereby the banks are able to increase their inter-
est revenue or reduce their interest costs. This not only applies to current accounts
which are usually no
all the variables used together
with their abbreviations and data sources.
The trend behavior of the variables included necessitates an analysis of their stationarity properties to
determine an [...] originates in the household sector. Of course, retailers hold cash due to
the payment behavior of their customers. But they have an incentive to economize on cash holdings. Other
non-financial firms and [...]
cross-border chains of transactions, criminals are remarkably adept at concealing the origin of their funds.
To investigate how shadow economic activities affect cash demand, we construct a variable
report may not be
suitable for certain investors depending on their specific investment objectives and time horizon or in the context of their overall financial situation. The investments discussed
may [...] explained in their entirety.
This information is given without any warranty on an "as is" basis and should not be regarded as a substitute for obtaining individual advice. Investors must make their own
d [...] investment in any instruments referred to herein based on the merits and risks involved, their own investment strategy and their legal,
fiscal and financial position. As this document does not qualify as an investment
captures the Bundesbank’s monetary policy remarkably well. However, their
analysis is based on ex-post revised data. We try to replicate their results under more
realistic informational assumptions. Ideally [...] long-run equilibrium
level in response to departures of either expected inflation or output from their respective
targets. Furthermore, they assume that the actual rate adjusts only partially to the target [...] quantitative assessment of the economic outlook.
Staff forecasts of inflation and output do exist, but their semi-annual frequency and varying
time horizons render them unsuitable for our purposes. Therefore
money
supply. Instead, they adjust it to achieve a target for the in-
terest rate, and they adjust their interest-rate target in re-
sponse to movements in output and inflation.“ Oder etwa
Mehrling (2004 [...] sionspapiere, Nr. 01–06, Januar 2006.
Goodhart, C. A., What should central banks do? What should be
their macroeconomic objectives and operations, in: Economic
Journal, November 1994, S. 1424 – 1436.
Hafer
many changes are taking place quite rapidly or have already
been factored by market players into their decisions. These changes involve institutional aspects, the
operational level of the money market [...] intended also for persons working at
banks and other financial sector institutions who seek to deepen their knowledge of European
monetary policy.
We wish to thank Dr. Caroline Willeke of the Deutsche
after a while to modify their
liquidity management correspondingly; (2) in the course of the first 18 months, some national
central banks revised their arrangement with their Treasury, also in view of [...] undertakes a similar
analysis of the demand and supply of factors of Federal Reserve deposits and their dynamic
interaction. As far as possible, we follow Hamilton�s line of reasoning. Nevertheless, some [...]
In a second step we cover the interaction between supply and demand factors for deposits and their
price in the form of the spread between the overnight rate and the main refinancing rate of the
Eurosystem
process
may differ substantially from their ex-post revised values. Real-time
uncertainty about key variables, like actual and potential output (and their
rates of growth), opens up a role for [...] and Beck and Wieland (2007, 2008) all restrict their
attention to optimal discretionary policy. Our interest in simple rules is
motivated by their potential advantages over discretionary policy. [...] that the interpretation of the
available data often depends on the assessment of their development relative
to their trend or long-run equilibrium levels that are unobservable and can
only be estimated
at view this as a temporary shock, and hence
which major swings in inflation are about to adjust their expectations of future short-term
develop. We use the probabilistic inference from rates by less than [...] contains the estimation results and a component and its effect on the real rates. If the
discussion of their implications for German tightening is viewed as a credible commitment
business cycle analysis. Section [...] the
evidence on Germany and the European Monetary Union. 3-month and 1-month money market rates. Their per-
5For a detailed argument, relating to the 6-month commer- formance was similar, if not slightly
websites are prohibited.
In most cases authors are permitted to post their version of the
article (e.g. in Word or Tex form) to their personal website or
institutional repository. Authors requiring further [...] , the European Central Bank and the University of Münster as well
as two anonymous referees for their valuable comments. In particular, we would
like to thank S. Arz for his contributions. The opinions [...] central banks in the euro area are connected
to TARGET2. There are no constraints on the size of their balances vis-à-vis the Euro-
pean Central Bank that emerge from the cross-border flow of interbank