Does Money Matter for Inflation in the Euro Area?
We analyze the relationship between M3 growth and inflation within an error correction framework including also the output gap, the 3-mo EURIBOR, and the 10-yr government bond yield. We find robust cointegration between money growth and inflation. Shocks in M3 growth account for up to 30% of the inf...
| Publicado en: | Contemporary Economic Policy Vol. 26; no. 4; pp. 590 - 607 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
October 2008
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=510700880&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510700880 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 10743529 CEY jtl: Contemporary Economic Policy issn: 10743529 maglogo: N pubinfo: dt: October 2008 vid: 26 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 510700880 10.1111/j.1465-7287.2008.00113.x ppf: 590 ppct: 17 formats: fmt: – @attributes: type: T – @attributes: type: P size: 4.1MB tig: atl: Does Money Matter for Inflation in the Euro Area? aug: au: Kaufmann, Sylvia Kugler, Peter su: Price inflation Mathematical models of monetary policy Mathematical models of economics Demand for money sug: subj: Price inflation Mathematical models of monetary policy Mathematical models of economics Demand for money ab: We analyze the relationship between M3 growth and inflation within an error correction framework including also the output gap, the 3-mo EURIBOR, and the 10-yr government bond yield. We find robust cointegration between money growth and inflation. Shocks in M3 growth account for up to 30% of the inflation forecast error variance, while the effects of output gap and interest rate shocks are mainly transitory. Significantly different dynamics are found during periods at the end of the seventies and beginning of the eighties when interest rate and inflation rate levels were high and real money growth decreasing. (JEL C32, E31, E41) Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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