Monetary aggregates have become important as intermediate targets for macroeconomic policy in many countries in recent years. Although some countries have shifted away from specific monetary targeting, monetary aggregates still constitute important indicators and instruments of policy. This paper examines monetary concepts and definitions in the context of examining financial flows and balances for possible revision of the United Nations' A System of National Accounts (SNA). An understanding of issues associated with money and its role in policy requires a discussion of its concept, its evolution, its statistical implementation across countries, and also its treatment in the SNA.

Author: Vicente Galbis