D'AGOSTINO, ANTONELLO; SURICO, PAOLO - In: Journal of Money, Credit and Banking 41 (2009) 2-3, pp. 479-489
We construct a measure of global liquidity using the growth rates of broad money for the G7 economies. Global liquidity produces forecasts of U.S. inflation that are significantly more accurate than the forecasts based on U.S. money growth, Phillips curve, and autoregressive and moving average...