predictive power of the monetary aggregate M3 for inflation in recent years. This paper reassesses the information content of … monetary analysis for future inflation using dynamic factors extracted from a new and richer cross-section of data including … inflation forecasts turn out to be more accurate than those produced by traditional competitor models at the relevant policy …

This paper examines the performance of inflation forecast feedback rules in a two-sector, calibrated model of the U ….K. economy. Under such rules, the interest rate responds to the deviation of the unchanged-interest-rate forecast of inflation … from the inflation target. We find that this procedure may produce a high degree of nominal and real stability, even …