While the long run relation between money and inflation is well established, empirical evidence on the adjustment to … substantially expands the traditional vector error correction approach, to analyze the short run impact of money on prices. We … contribute to the literature in three ways: First, we distinguish changes in velocity of money that are due to institutional …

keep a very close eye on money supply if it wants to prevent consumer and/or asset price inflation. …We turn our attention to the role of money for determining nominal magnitudes. Using US data, we find that the … aggregate “nominal output plus and stock market capitalisation” is closely related to the money stock, lending support to one of …