Publication

Feb 2007

This paper analyzes whether core money growth helps to predict future inflation in a useful and reliable way. The author shows that core money growth carries important information not contained in the inflation history. He argues that its inclusion in a forecasting model can increase the forecasting accuracy and that it has had a strong and stable long-run link to inflation over the last decades.

Download English (PDF, 41 pages, 562 KB)
Author Kai Carstensen
Series Kiel Institute Working Papers
Issue 1318
Publisher Kiel Institute for the World Economy
Copyright © 2007 Kiel Institute for the World Economy
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