Inflation is a monetary phenomenon. While this statement is widely accepted in terms of a long-run relationship, the … quantity theory has been made operational also for the short-run dynamics of inflation by so-called Pstar models. An error … inflation. The response of the HICP is strongly positive. Other factors such as raw material prices and unit labor costs also …

In this paper, it is analyzed whether core money growth helps to predict future inflation in a useful and reliable way … information not contained in the inflation history, that its inclusion in a forecasting model can increase the forecasting … accuracy, and that it has had a strong and stable long-run link to inflation over the last decades. A particularly promising …

This paper assesses the performance of monetary indicators in predicting euro area HICP inflation out-of-sample over …. The results suggest that monetary indicators are still useful indicators for inflation in the euro area, but that a … inflation. …