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1–10 of 10 collapsed search results for monetary aggregates

RBA Glossary definition for monetary aggregates

monetary aggregates – A series of measures of the values of currency on issue, current deposits with banks, other deposits with banks, plus borrowings from the private sector by non-bank financial institutions (NBFIs) less currency and bank deposits by NBFIs. Components consist of: 'M1' defined as currency plus bank current deposits from the private non-bank sector; 'M3' defined as M1 plus all other authorised deposit-taking institution (ADI) deposits from the private non-ADI sector, plus certificates of deposit issued by banks, less ADI deposits held with one another; 'Broad money' defined as M3 plus other short-term liquid AFI liabilities held by the private sector, except those held by other AFIs ; 'Money base' defined as holdings of banknotes and coins by the private sector plus deposits of banks with the Reserve Bank of Australia (RBA) and other RBA liabilities to the private non-bank sector

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New Classical Models and Unobserved Aggregates

1 Feb 1986 RDP 8601
Robert G. Trevor
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1986/8601.html

The Model

1 Feb 1986 RDP 8601
Robert G. Trevor
It also reflects the usual New Classical assumption that the monetary aggregate (that is important for private behavior) is independent of other contemporaneous variables. ... However, in the current model, no lagged values of the true monetary aggregate
https://www.rba.gov.au/publications/rdp/1986/8601/model.html

Introduction

1 Feb 1986 RDP 8601
Robert G. Trevor
Both the measured monetary aggregate and the monetary base are assumed to be observable (published) variables. ... Agents are assumed to have rational expectations of the unobservable monetary aggregate and its lagged values.
https://www.rba.gov.au/publications/rdp/1986/8601/introduction.html

References

1 Feb 1986 RDP 8601
Robert G. Trevor
XI, 281–319. Cagan, P. (1982). The Choice among Monetary Aggregates as Targets and Guides for Monetary Policy. ... New York: Academic Press. Taylor, J.B. (1980). Aggregate Dynamics and Staggered Contracts.
https://www.rba.gov.au/publications/rdp/1986/8601/references.html

New Classical Models and Unobserved Aggregates

1 Feb 1986 RDP 8601
Robert G. Trevor
Research Discussion Paper – RDP 8601 New Classical Models and Unobserved Aggregates.
https://www.rba.gov.au/publications/rdp/1986/8601/

Conclusions

1 Feb 1986 RDP 8601
Robert G. Trevor
The partial information flow allows agents continually to improve their best guesses about the unobservable true monetary aggregate, but (even over time) never fully reveals the true values. ... While these results have been derived under the specific
https://www.rba.gov.au/publications/rdp/1986/8601/conclusions.html

Comparison with Other Models

1 Feb 1986 RDP 8601
Robert G. Trevor
RDP 8601: New Classical Models and Unobserved Aggregates 6. Comparison with Other Models. ... It is not, however, a very good interpretation because it implies an inconsistent monetary authority – why publish both.
https://www.rba.gov.au/publications/rdp/1986/8601/comparison-with-other-models.html

An Application of the Kalman Filter

1 Feb 1986 RDP 8601
Robert G. Trevor
RDP 8601: New Classical Models and Unobserved Aggregates 3. An Application of the Kalman Filter. ... Download the Paper 913. KB. At the end of period t, agents can update their information sets by observations on current output, prices, the measured
https://www.rba.gov.au/publications/rdp/1986/8601/application-of-the-kalman-filter.html

Persistence of Expectational Errors and Demand Shocks

1 Feb 1986 RDP 8601
Robert G. Trevor
This persistence of demand shocks is due entirely to the unobservable nature of the true monetary aggregate. ... This would suggest that one should describe the monetary “state” of the economy as being determined by some unobservable monetary
https://www.rba.gov.au/publications/rdp/1986/8601/persistence-of-expectational-errors-and-demand-shocks.html

Tests of the New Classical Hypotheses

1 Feb 1986 RDP 8601
Robert G. Trevor
RDP 8601: New Classical Models and Unobserved Aggregates 5. Tests of the New Classical Hypotheses. ... aggregate could lead to a failure to reject the (false) null hypothesis of zero correlation.
https://www.rba.gov.au/publications/rdp/1986/8601/tests-of-the-new-classical-hypotheses.html