English, Article, Journal or magazine article edition: Money in the Inflation Equation: the Euro Area Evidence Fourçans, André; Vranceanu, Radu

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Bookmark: http://trove.nla.gov.au/version/169852
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Money in the Inflation Equation: the Euro Area Evidence
Author
  • Fourçans, André
  • Vranceanu, Radu
Physical Description
  • preprint
Notes
  • The ECB is the only major central bank that still emphasizes the role of money in monetary policy management. In this paper, we bring some support to this approach. Taking into account Euro area data from the period between 1999 and 2007, we demonstrate that a steady 10 per cent increase in M3 may result in an inflation rate of approximately 2½ percentage points. A negative output gap would have a short term offsetting effect, and vice versa.
  • ECB; Inflation; Monetary Policy; Money
  • RePEc:ebg:essewp:dr-08012
Language
  • English
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