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Monetary Aggregates

The euro area monetary aggregates are composed of certain liabilities of MFIs (and in certain cases of central government) vis-à-vis non-MFI euro area residents excluding central government. The liabilities of MFIs that are included in monetary aggregates are currency in circulation, overnight deposits, deposits with agreed maturity up to 2 years, deposits redeemable at notice up to 3 months, repos, debt securities issued by MFIs with an initial maturity up to 2 years and money market fund shares/units.

As of January 2001 that Greece joined the euro area, the Greek monetary aggregates refer to what is known as the ‘Greek contribution’ to euro area aggregates. The ‘Greek contribution’ is calculated in such a way that if added to the ‘contributions’ of all other member states the result is exactly equal to the euro area aggregate. This implies the following rules: (a) with respect to deposits, the ‘Greek contribution’ is equal to the total amount of deposits by Greek and other euro area residents held with Greek MFIs; (b) with respect to debt securities issued by MFIs (bank bonds), the ‘Greek contribution’ is equal to the debt securities issued by Greek MFIs minus the amount of bank bonds issued by all euro area MFIs and held by Greek MFIs. It is thus possible that the ‘Greek contribution’ is a negative number; (c) there is a particular problem with the calculation of the ‘Greek contribution’ to currency in circulation (banknotes and coins in circulation). As of January 2002 that euro area banknotes were put in circulation and replaced national banknotes, currency in circulation can be calculated for the euro area as a whole and not for each member state separately. The Eurosystem has adopted a convention for calculating national contributions to the euro area currency in circulation. According to this convention the ‘Greek contribution’ to currency in circulation is derived if we assume that the amount of banknotes put in circulation by the Bank of Greece is proportional to its subscription key to the ECB share capital, excluding the ECB’s 8% share of total euro banknote issue. In a monetary union it is the overall money supply that matters and not its geographical decomposition. And it is of course the case that prior to Greece’s entry into the euro zone that Bank of Greece compiled monetary aggregates for the country as a whole and not for each geographical region separately.

The data on the ‘Greek contribution’ to euro zone monetary aggregates have as a starting point January 2001, when Greece adopted the euro. In order to assist research work, the ECB (in collaboration with the Bank of Greece) estimated historical data for the period 1980-2000. The historical estimates show the theoretical ‘Greek contribution’ to the monetary union if it existed at that period. The data are in effect the monetary aggregates of Greece for the period 1980-2000 according to the current definitions of what must be included in the money supply and not according to the actual definition of monetary aggregates adopted by the Bank of Greece during this period. 



Greek contribution to euro area monetary aggregates 

Historical data on the Greek contribution to euro area monetary aggregates 


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