Publication detail

Liquidity supply and money velocity co-movements in the Eurozone – Time-Frequency Domain Approach

KAPOUNEK, S. POMĚNKOVÁ, J.

Original Title

Liquidity supply and money velocity co-movements in the Eurozone – Time-Frequency Domain Approach

Type

journal article in Scopus

Language

English

Original Abstract

The authors focus on financial stability in the Eurozone and propose indicator for macro-prudential policy. The empirical part of the paper applies wavelet analysis to identifiy cyclical movements in money velocity and liquidity supply. The cospectrum shows significant co-movements between 6-16 periods. The authors conclude that increase of money velocity supports financial markets to provide provide more credits. A pro-cyclical influence results in a boom which is then followed by a bust is task for macro-prudential policy and anti-cyclical instruments. Identificator based on the money velocity movements has potential function to identify instability pressures at the money market in huge monetary unions with large financial systems, where upper limit of credit money creation is vanished.

Keywords

financial stability, macro-prudential policy, credit money creation, money endogeneity, wavelet analysis

Authors

KAPOUNEK, S.; POMĚNKOVÁ, J.

RIV year

2012

Released

29. 5. 2012

Publisher

Mendelu v Brně

Location

Brno

ISBN

1211-8516

Periodical

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis

Year of study

60

Number

2

State

Czech Republic

Pages from

109

Pages to

116

Pages count

8

URL

https://acta.mendelu.cz/artkey/acu-201202-0015_liquidity-supply-and-money-velocity-co-movements-in-the-eurozone-time-frequency-domain-approach.php

BibTex

@article{BUT94763,
  author="Svatopluk {Kapounek} and Jitka {Dluhá}",
  title="Liquidity supply and money velocity co-movements in the Eurozone – Time-Frequency Domain Approach",
  journal="Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis",
  year="2012",
  volume="60",
  number="2",
  pages="109--116",
  doi="10.11118/actaun201260020109",
  issn="1211-8516",
  url="https://acta.mendelu.cz/artkey/acu-201202-0015_liquidity-supply-and-money-velocity-co-movements-in-the-eurozone-time-frequency-domain-approach.php"
}