This paper derives a set of leading indicators of inflation for Sweden. It also discusses methodological and policy issues pertaining to the estimation of these indicators. The main findings are: (1) narrow money is the most powerful leading inflation indicator; (2) broad money and inflation...

The risk of a sustained acceleration of inflation due to the expansionary monetary and fiscal policies in the wake of the global recession seems low, if the central banks reduce the money supply rapidly enough as soon as the crisis abates and if governments present credible measures to...