Johansen cointegration technique which is appropriate for empirical testing based on time series. The empirical results suggest … sector is risk averse and rations loans with an aim not to deteriorate its' profitability. Therefore, monetary tightening …

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 … estimation methods. Specifically, we employ VAR models with drifting parameters and stochastic volatility which are used to …