Divisia Indices for Money: An Appraisal of Theory and Practice

Staff working papers set out research in progress by our staff, with the aim of encouraging comments and debate.
Published on 01 April 1993

Working Paper No. 9

By Paul Fisher, Suzanne Hudson and Mahmood Pradhan 

Increasing interest has been shown in recent years in index number measures of money which weight the different components within each monetary aggregate. This paper presents an assessment of Divisia measures of money including an appraisal of the theoretical arguments for the Divisia approach to monetary aggregation. It also describes the construction of a Divisia index for the United Kingdom and discusses the potential relevance of Divisia for the assessment of monetary conditions. 

PDFDivisia Indices for Money: An Appraisal of Theory and Practice

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