Some economists advocate focusing less emphasis on monetary aggregates because the relationship of monetary aggregates to the ultimate goals of monetary policy is less reliable now than in the past. But the stability of the relationship between money growth and inflation is a testable...

Recently, economists have examined the monetarist and the expectations-augmented Phillips-curve models of inflation to determine which model is a better predictor of the inflation rate. These studies raise an important question: Does money growth contain information that is useful in predicting...