There is a broad consensus among economists that, in the long run, inflation is a monetary phenomenon. However … inflationary processes. Moreover, impulses from monetary policy actions are transmitted to inflation through the output gap alone …. Interest rate impulses affect inflation through two channels, the output gap and the liquidity gap. Section 2 of the paper …

controlling inflation by managing the money supply; iii) the results of the impulse response analysis find that the responses of … interest rate channel to achieve the desired impact on real economy and inflation is limited at this time; iv) the … investigation of inflation determinants suggests that real GDP, money supply and the exchange rate are important factors in …