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Inflation and money growth: evidence from a multi-country data-set
Frain, John C.
Using a multi-country data set strong correlation are found between average growth rates of monetary aggregates and average inflation. The correlation remains strong when countries with higher average inflation rates are removed from the sample. These results confirm the strong correlation found in the traditional literature but contradict those in De Grauwe and Polan (2001) who, in a recent analysis, find that the strong link vanishes when higher inflation countries are excluded. Further analysis confirms the unit response and bears out the value of monetary aggregates as an input to the making of monetary policy.
Keyword(s): Inflation; Monetary theory; Quantitative economics
Publication Date:
Type: Conference item
Peer-Reviewed: Unknown
Language(s): English
Institution: Trinity College Dublin
Citation(s): Frain, John C. 'Inflation and money growth: evidence from a multi-country data-set'. - Economic & Social Review, Vol. 35, No. 3, Winter, 2004, pp. 251-266, Dublin: Economic & Social Research Institute
Publisher(s): Economic & Social Studies
First Indexed: 2014-05-13 05:29:39 Last Updated: 2018-08-12 06:15:39