countries with low inflation, the raw relationship between average inflation and the growth rate of money is tenuous at best … elasticities implied by theories of Baumol-Tobin and Miller-Orr. Finally, the sample after 1990 shows considerably less inflation … variability, worsening the fit of a one-for-one relationship between money growth and inflation, and generates a fairly low …

the elasticity is very small for interest rates below 5% suggests that the welfare costs of inflation are small. We also …

substitutability on exchange rates, international adjustment and the inflation tax are discussed. The paper also reviews the empirical …

consumption velocity very closely during the high-inflation years. …

output or inflation as in the empirical 'two-pillar' Phillips curves estimated in some recent contributions, it would be …-checking does not require direct effects of money on output or inflation. …

disinflation under inflation targeting policies. The analysis is motivated by the disinflation performance of many inflation … episode price-setting firms' expect inflation to be highly persistent and opt for backward-looking indexation. As the central … bank acts to bring inflation under control, price-setting firms revise their estimates of the degree of persistence. Such …

rate sequences that satisfy interest rate target rules. An interest rate target with a positive inflation feedback in … general corresponds to money growth rates rising with inflation. When prices are not completely flexible, this implies that a … target can be implemented by a non-destabilizing money supply, even if the inflation feedback exceeds one, which is often …

criticized for failing to explain common trends in money growth and inflation, and that therefore money should be used as a cross …-check is shown to be effective in offsetting persistent deviations of inflation due to central bank misperceptions. …