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Periodicals
Bank of Canada Review
Spring 1995
Index of Working Papers | Index of Technical Reports| Title | Interpreting recent changes in monetary aggregates |
| Author(s) | Kevin Clinton |
| Type | Bank of Canada Review article |
| Date of publication |
Spring 1995 |
| Language | English and French |
| Abstract |
In 1994, broad monetary aggregates such as M2+ grew at an unusually slow rate, indicating a continuation of low inflation. Narrow money, M1, ballooned early in the year, partly for technical reasons. However, its overall deceleration for the year as a whole would be consistent with lower output growth in the first half of 1995 than was seen the year before.
During the first half of 1994, there was a continued shift by investors from deposits into equity, bond and mortgage mutual funds. In the second half of the year, following a rise in interest rates and a fall in the yields posted by mutual funds, there was a movement back into M2+. In this annual review of the monetary aggregates, the author discusses the reasons for these shifts and their implications for M2+. |
| Bank topic index |
Monetary aggregates |
| JEL classification |
E4 |
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