The Goldilocks Measure of UK Monetary Aggregates: An Introduction to MA

37 Pages Posted: 6 Jun 2014  

Anthony J. Evans

ESCP Europe; ESCP Europe - Department of Economics

Date Written: May 27, 2014

Abstract

The 2008/09 financial crisis and subsequent recession has created renewed attention to UK monetary aggregates. This discussion paper argues that although measures of the money supply are crucial to understanding the economy, existing approaches are flawed: "Notes and Coin" is too narrow, and M4 is too broad. An alternative measure that is based on the Austrian school approach to the definition of money (MA) is proposed.

Keywords: asset bubble, credit creation, liquidity, monetary policy, money supply

JEL Classification: B53, E41, E51, E52

Suggested Citation

Evans, Anthony J., The Goldilocks Measure of UK Monetary Aggregates: An Introduction to MA (May 27, 2014). Available at SSRN: https://ssrn.com/abstract=2446812 or http://dx.doi.org/10.2139/ssrn.2446812

Anthony J. Evans (Contact Author)

ESCP Europe ( email )

79 Avenue de la Republique
Paris, 75011
France

HOME PAGE: http://anthonyjevans.com

ESCP Europe - Department of Economics ( email )

United Kingdom

HOME PAGE: http://anthonyjevans.com

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