Weighted Monetary Aggregates for Germany

Financial innovations and regulatory changes are often associated with the deterioration of previously stable monetary relationships in several countries. ‘Missing money’ and ‘velocity puzzles’ have led to frequent redefinition of monetary aggregates and, finally, particularly in the USA and the UK, to the abolishment of monetary targeting strategies. In these circumstances it is not surprising that research on alternative monetary aggregates, based on sound microfoundations and consistent with economic aggregation and index theory, has been intensified.