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. …

dynamic stochastic general equilibrium framework, we examine the effects of alternative monetary policy rules on inflation … persistence, the information content of monetary data, and real variables. We show that inflation persistence and the variability … of inflation relative to money growth depends on whether the central bank follows a money growth rule or an interest rate …