relationship of various measures of money and inflation. After demonstrating that previous naïve correlations between money and … inflation as established in the 20th century literature have largely disappeared, we explain why this cannot be taken as support …

inflation in the United States. We test for Granger-causality out-of-sample and find, perhaps surprisingly given recent … theoretical arguments, that including money growth in simple VAR models of inflation does systematically improve out … Volcker and Greenspan eras. However, the contribution of money to inflation forecasting accuracy is quantitatively limited and …

We assess the bivariate relation between money growth and inflation in the euro area and the United States using hybrid … statistically unstable across time in both regions. The effect of money growth on inflation weakened notably after the 1980s before … maximum impact of money growth on inflation is increasing in the trend level of inflation. These results caution against …

Based on the observed behavior of monetary aggregates and exchange rates, we classify inflation stabilization episodes …

, and capital is negative when adjusting for this. Capital is sufficient to back a low inflation target given that the … stabilization would benefit from increased emphasis on low inflation as the primary objective of monetary policy and a stronger …