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The leading researchers from central banks and universities around the world debate issues central to the performance of Divisia monetary aggregates both in theory and in practice. The book is divided into four sections. The first contains two papers which present particularly new ideas and applications. The first, by William Barnett and his co-author, Yi Liu, takes the novel approach of incorporating the riskiness of an asset into the contraction of a Divisia aggregate. The second, by Robert Dorsey, presents the first application of neutral network technology to the Divisia index debate. the remaining three sections examine the Divisia issue from a geographical perspective. There are five papers on European issues, four papers from the Pacific Basin area and two papers in the final section covering the North American region. The overall conclusions are that Divisia monetary aggregates outperform their simple sum counterparts in a wide range of applications the world over.
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