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Money at Low Frequencies Author info | Abstract | Publisher info | Download info | Related research | Statistics Katrin Assenmacher-Wesche
Stefan Gerlach
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Many central banks have abandoned monetary targeting because the link between money growth and inflation seemed to disappear in the 1980s. Using spectral regression techniques, we show that for the euro area, Japan, the UK, and the US there is a unit relationship between money growth and inflation at low frequencies when the impact of interest rate changes on money demand is accounted for. We estimate Phillips-curve equations in which the low-frequency information from money growth is combined with high-frequency information from the output gap to explain movements in inflation. (JEL: C22, E3) (c) 2007 by the European Economic Association.
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Article provided by MIT Press in its journal Journal of the European Economic Association .
Volume (Year): 5 (2007)
Issue (Month): 2-3 (04-05)
Pages: 534-542
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Handle: RePEc:tpr:jeurec:v:5:y:2007:i:2-3:p:534-542Contact details of provider: Web page: http://www.mitpressjournals.org/jeea
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Assenmacher-Wesche, Katrin & Gerlach, Stefan, 2006.
"Money Growth, Output Gaps and Inflation at Low and High Frequency: Spectral Estimates for Switzerland ,"
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Beck, Günter & Wieland, Volker, 2007.
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Other versions: Guenter W. Beck & Volker Wieland, 2007.
"Money in Monetary Policy Design under Uncertainty: The Two-Pillar Phillips Curve versus ECB-Style Cross-Checking ,"
CFS Working Paper Series
2007/17, Center for Financial Studies.
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Other versions:
Beck, Günter W. & Wieland, Volker, 2007.
"Money in monetary policy design under uncertainty: the Two-Pillar Phillips Curve versus ECB-style cross-checking ,"
Discussion Paper Series 1: Economic Studies
2007,20, Deutsche Bundesbank, Research Centre.
[Downloadable!] Beck, Günter & Wieland, Volker, 2007.
"Money in Monetary Policy Design under Uncertainty: The Two-Pillar Phillips Curve versus ECB-Style Cross-Checking ,"
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6098, C.E.P.R. Discussion Papers.
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"Monetary Factors and Inflation in Japan ,"
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Assenmacher-Wesche, Katrin & Gerlach, Stefan & Sekine, Toshitaka, 2007.
"Monetary Factors and Inflation in Japan ,"
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