Money Growth and Inflation in the United States
نویسنده
چکیده
In this paper, I examine whether the current neglect of money growth in formulating monetary policy is consistent with the data. In particular, I examine whether money growth helps to predict inflation. The evidence indicates that money growth clearly helps to predict nominal income and is more informative than any other single variable about future inflation. Acknowledgement 1 I thank R. W. Hafer for helpful discussions, Henry Lin for helpful comments and Shalini Patel for research assistance. Any views are the author’s views and not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System. Money Growth and Inflation in the United States
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