We propose a new algorithm which allows easy estimation of Vector Autoregressions (VARs) featuring asymmetric priors …

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 …

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. …

data from 1995Q4 to 2021Q4 and Bayesian estimation methods, we find that trend inflation has been well-anchored during the …In this paper, we estimate trend inflation in Sweden using an unobserved components stochastic volatility model. Using … period - although in general at a level below the inflation target - and it does not appear to have been affected much by the …