Economists and central bankers no longer consider monetary aggregates relevant for inflation forecasts. We explain this … neglect by advancing and testing the hypothesis that monetary aggregates are only relevant for inflation in unsettled monetary … and inflationary conditions. When inflation is basically stable around the central bank target (1.9 percent), as it has …

power for inflation or, put differently, whether money growth Granger causes inflation. We use a historical dataset … - consisting of annual Swedish data on money growth and inflation ranging from 1620 to 2021 - and employ state-of-the-art Bayesian … likelihoods - provides strong evidence in favour of money growth Granger causing inflation. This strong evidence is, however, not …

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 that shocks to money growth has on inflation weakened notably after … monetary aggregates to inflation. …