TY  - UNPD
A1  - Coenen, Günter
A1  - Levin, Andrew
A1  - Wieland, Volker
T1  - Data uncertainty and the role of money as an information variable for monetary policy
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2003,07
N2  - In this study, we perform a quantitative assessment of the role of money as an indicator variable for monetary policy in the euro area. We document the magnitude of revisions to euro area-wide data on output, prices, and money, and find that monetary aggregates have a potentially significant role in providing information about current real output. We then proceed to analyze the information content of money in a forward-looking model in which monetary policy is optimally determined subject to incomplete information about the true state of the economy. We show that monetary aggregates may have substantial information content in an environment with high variability of output measurement errors, low variability of money demand shocks, and a strong contemporaneous linkage between money demand and real output. As a practical matter, however, we conclude that money has fairly limited information content as an indicator of contemporaneous aggregate demand in the euro area.
T3  - CFS working paper series - 2003, 07 
KW  - euro area
KW  - Kalman filter
KW  - macroeconomic modelling
KW  - measurement error
KW  - monetary policy rules
KW  - rational expectations
KW  - Geld
KW  - Europäische Union
KW  - Geldpolitik
KW  - Währungsunion
Y1  - 2003
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4480
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-10123
ER  -