Money creation and economic activity

Eduard J. Bomhoff, Paul T.W.M. Veugelers

Research output: Contribution to journalArticleResearchpeer-review


In the Netherlands not much attention is paid to money supply figures as an indicator of actual monetary conditions. This can be partly explained by the publication lag and the continuous revisions of seasonally adjusted data. However, the information that can be derived from money supply figures is limited because of 'temporary disturbances originating from the foreign exchange market. In this paper a correction method for these temporary disturbances is proposed. Money supply figures show a much closer link to real economic activity when corrected in this way.

Original languageEnglish
Pages (from-to)498-516
Number of pages19
JournalDe Economist
Issue number4
Publication statusPublished - Dec 1983
Externally publishedYes

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