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Pierre Sola

30 September 2008
This occasional paper describes the monetary presentation of the euro area balance of payments and its use. The monetary presentation is a tool for assessing the impact of balance of payments transactions involving non-bank residents on monetary developments. The paper explains in detail the principle underlying this approach, i.e. the link between the external counterpart of money, as reflected in the balance sheet of the banking sector, and the balance of payments. From a statistical perspective, it is shown that the monetary presentation of the balance of payments, which is based on international statistical standards, may be applied in any country or currency union. With regard to euro area statistics, the paper elaborates on the practical implementation of the monetary presentation, while also describing a few approximations and remaining statistical challenges. Finally, the paper assesses how the monetary presentation of the balance of payments has been used for analysing monetary developments in the euro area, and highlights the significant impact of balance of payments transactions on monetary dynamics in certain periods.
JEL Code
E51 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Money Supply, Credit, Money Multipliers
F40 : International Economics→Macroeconomic Aspects of International Trade and Finance→General
Eurosystem Monetary Transmission Network
22 July 2020
Expert Group on Linking Macro and Micro Data for the household sector
The Expert Group on Linking Macro and Micro Data for the household sector (EG-LMM) was established in December 2015 within the European System of Central Banks (ESCB) with the aim of comparing and bridging macro data (i.e. National Accounts/Financial Accounts) and micro data (i.e. the Household Finance and Consumption Survey) on wealth. Furthermore, the Expert Group also focused on developing distributional results for household macro balance sheets, starting with national data from the euro area Member States. The Expert Group assessed the extent to which these two sets of statistics could be compared and was able to link most balance sheet items. Since, following adjustments, the estimates yielded from the micro data were still lower than the macro data, an estimation method was developed to gross up the micro data to be in line with the macro data results. The methodology delivers estimates of the distribution of household wealth that are closely aligned with Financial Accounts aggregates, thereby offering valuable new information for the purposes of macroeconomic analyses based on such Financial Accounts. Further research is needed to examine the robustness of these results and to improve the estimation method taking into account country-specific features and information. The Expert Group has therefore recommended further work be undertaken with a view to compiling experimental distributional results by end-2022.
JEL Code
D31 : Microeconomics→Distribution→Personal Income, Wealth, and Their Distributions
G51 : Financial Economics