abstract: central banks have long been interested in obtaining precise estimations of money demand given the fact that the evolution of money demand plays a key role over several monetary variables. one implication of currency substitution is that the exchange rate could serve as another determinant of the demand for money. due to the recent currency crisis in iran, it would be important to inv...

European Monetary Union will come into existence in 1999. This raises questions related to the monetary policy targets that will be adopted by the European Central Bank (ECB). For both likely candidates, targeting a money aggregate or an inflation target, the existence of a stable money demand function at a European level is important. In this paper estimates of such a European money demand for...

A popular model in the literature postulates an interest rate rule, a NAIRU price equation, and an aggregate demand equation in which aggregate demand depends on the real interest rate. In this model a positive inflation shock with the nominal interest rate held constant is explosive because it increases aggregate demand (because the real interest rate is lower), which increases inflation throu...

a r t i c l e i n f o In this paper, we evaluate the role of using consumer price index (CPI) disaggregated data to improve the accuracy of inflation forecasts. Our forecasting approach is based on extracting the factors from the subcompo-nents of the CPI at the highest degree of disaggregation. The data set contains 54 macroeconomic series and 243 CPI subcomponents from 1992 to 2009 for Mexico...

The Bureau of Labor Statistics rounds the Consumer Price Index (CPI) to a single decimal place before releasing it, and the published CPI inflation series is calculated from those rounded index values. While rounding has only a relatively small effect on the level of the CPI series at present, it can have a significant effect on CPI inflation, the monthly percent changes in the CPI. This paper ...

in macroeconomic studies, social welfare is assumed as a function of inflation and unemployment. although the social welfare function which is dependent to unemployment and inflation variables has been used widely in macroeconomic theories, but this relation needs to be tested through empirical observations. this paper, using variables such as to economics of happiness area and subjective wellb...