We consider what, if any, relationship there is between monetary aggregates and inflation, and whether there is any … paribus unitary relationship between inflation and money growth. Simulations of a New Keynesian model suggest that we should … allowance needed for the phase shift in the relationship between monetary growth rates and inflation. While financial innovation …

indicator and forecasting properties of the real interest rate gap for inflation, both in the model and in the data. Our results … suggest that the real interest rate gap has value as an inflation indicator, supporting the ‘neo-Wicksellian framework …

justified empirically. Both the relation between money and inflation, and between money and aggregate demand, are considered …. Regarding the first relation, it is argued that both the mean and the dynamics of inflation in present-day models are governed … monetary aggregates and inflation in no way requires a direct channel connecting money and inflation. The relevance of money …

incomes policy as the primary weapon against inflation; Sterling M3 targeting in the late 1970s and early 1980s; moves in the … inflation targeting from October 1992. This Paper estimates simple interest rate reaction functions, or ‘Taylor rules’, for … different UK monetary policy regimes. The inflation targeting regime that began in 1992 appears to be the only period that is …

The United Kingdom is a highly open economy, and has a monetary policy strategy of targeting inflation in consumer … prices. In this paper, we look at the evidence from the UK on inflation behaviour, and examine the propositions from several … theoretical models about inflation dynamics in an open economy, focussing in particular on the hypothesised connections between …