Comparison of Direct and Indirect Methods of Seasonal Adjustment of Monetary Aggregates of the Russian Federation

Abstract

As a rule, time series of monetary aggregates have significant seasonal fluctuations. While seasonally adjusting aggregate indicators a decision should be made, whether it is better to adjust aggregate time series directly or initially adjust component time series and sum them into the total aggregate indicator. The work describes the approach to seasonal adjustment of monetary aggregates M2 (Money Supply, national definition) and Broad Money, the check of stability of the seasonally adjusted values and the choice of the optimal method.