Comments on: Money demand, Divisia aggregate and share price volatility in the UK https://monetarypolicy2018.weaconferences.net/papers/money-demand-divisia-aggregate-and-share-price-volatility-in-the-uk/ 19th February to 20th April, 2018 Mon, 09 Jun 2025 12:37:55 +0000 hourly 1 By: Ryan Mattson https://monetarypolicy2018.weaconferences.net/papers/money-demand-divisia-aggregate-and-share-price-volatility-in-the-uk/#comment-33 Tue, 20 Mar 2018 15:48:16 +0000 http://monetarypolicy2018.weaconferences.net/?post_type=wea_paper&p=167#comment-33 “We also uncover that as share prices increase, investors tend to increase their holdings of more savings oriented assets but they also switch from low interest yielding highly liquid assets into equities.”

I really think you should look at the US Divisia M4 and consider an extension, specifically looking at the period of 2006 to 2010 and the most recent data starting in 2017 with the interest rate rises. Expenditure share on the broad components (commercial paper, short term bills, repos) dropped as these user costs did, while the share of savings great larger.

Expenditure shares and weights should be available from the CFS website.

]]> By: monetarypolicyconferenceadmin https://monetarypolicy2018.weaconferences.net/papers/money-demand-divisia-aggregate-and-share-price-volatility-in-the-uk/#comment-12 Wed, 07 Mar 2018 11:24:05 +0000 http://monetarypolicy2018.weaconferences.net/?post_type=wea_paper&p=167#comment-12 A very good idea and extremely good way of presenting things. Maybe could be interesting to expand this to the rare disasters models and asset pricing.

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