Recent financial instability has called into question the sufficiency of low inflation as a goal for monetary policy …. Whether these now need re-examination, or whether a low-inflation regime, in which the authorities stand ready to resort to …

facts: (i) the long-run link between money growth and inflation and (ii) the link between credit growth and financial crises …. The analysis reveals that the former has weakened over time, while the latter has become stronger. Moreover, the money-inflation … two monetary facts. The money-inflation link is weaker in regimes characterised by low inflation and highly liberalised …