Recent empirical studies have found evidence of unstable long run money demand functions if recent data are used. If the link between money balances and the macroeconomy is fragile, the rationale of monetary aggregates in the ECB strategy has to be doubted. In contrast we present a "stable" long run money demand relationship for M3 for the period 1983-2006. To obtain the result, the short run homogeneity ...
In:
Public Choice
144 (2010), 3-4, S. 459-472
| Christian Dreger, Jürgen Wolters
This paper explores the relationship between the self-declared risk aversion of private investors and their propensity to hold incomplete portfolios of financial assets. The analysis is based on household survey data from the German Socioeconomic Panel (SOEP) that provides a reliable measure of individual attitudes toward financial risk. Our findings suggest that more risk averse households tend to ...
In:
The Quarterly Review of Economics and Finance
52 (2012), 1, S. 1-14
| Nataliya Barasinska, Dorothea Schäfer, Andreas Stephan
The appropriate design of monetary policy in integrated financial markets is one of the most challenging areas for central banks. One hot topic is whether the increase in liquidity has contributed to the formation of price bubbles in asset markets in the years preceding the financial crisis. If linkages are strong, the inclusion of asset prices in the monetary policy rule may limit speculative runs ...
In:
Review of Economics & Finance
(2011), 1, S. 43-52
| Christian Dreger, Jürgen Wolters
Chestnut Hill, Mass.:
Boston College, Department of Economics,
2010,
22 S.
(Boston College Working Papers in Economics ; 730)
| Oleg Badunenko, Christopher F. Baum, Dorothea Schäfer
Göttingen:
Universität Göttingen,
2009,
24 S.
(Discussion Papers / Center for European, Governance and Economic Development Research ; 80)
| Burcu Erdogan