Estimation of a function for the coefficient of circulation in monetary resources

Authors

  • Edgardo Demaestri Center for Monetary and Banking Studies (BCRA), Argentina

Keywords:

Banking Multiplier, Banks, Coefficient Between Bills and Coins and Monetary Resources, Liquidity, Monetary Programming

Abstract

The ratio between the holdings of banknotes and coins (in circulation) and monetary resources, which is generally called “coefficient c”, is of special importance in carrying out monetary programming and in the “liquidity” projections made by financial entities. Likewise, the “c” coefficient plays a relevant role in the analysis of monetary creation, which considers that the definition of monetary aggregates (which is of interest for monetary programming) results from the product of the monetary base by a multiplier. The objective of this work is to estimate a function that explains the evolution of the “c” coefficient for the period 1977-1981 and that is useful for making predictions of the values of that ratio in the short run.

JEL classification: E51

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Published

1981-06-01

How to Cite

Demaestri, E. (1981) “Estimation of a function for the coefficient of circulation in monetary resources”, Ensayos Económicos, (18), pp. 1–50. available at: https://bcra.ojs.theke.io/ensayos_economicos_bcra/article/view/595 (accessed: 28 April 2025).

Issue

No. 18 (1981): Ensayos Económicos

Section

Articles