Template-Type: ReDIF-Paper 1.0
Author-Name: Claudio Borio
Author-X-Name-First: Claudio
Author-X-Name-Last: Borio
Author-Name: Boris Hofmann
Author-X-Name-First: Boris
Author-X-Name-Last: Hofmann
Author-Name: Egon Zakrajšek
Author-X-Name-First: Egon
Author-X-Name-Last: Zakrajšek
Title: Does money growth help explain the recent inflation surge?
Abstract: The strength of the link between money growth and inflation depends on the inflation regime: it is one-to-one when inflation is high and virtually non-existent when it is low.
A link can also be seen in the recent possible transition from a low- to a high-inflation regime. An upsurge in money growth preceded the inflation flare-up, and countries with stronger money growth saw markedly higher inflation.
Looking at money growth would have helped to improve post-pandemic inflation forecasts, suggesting that its information value may have been neglected.
Length: 9 pages
Creation-Date: 2023-01-26
File-URL: https://www.bis.org/publ/bisbull67.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull67.htm
File-Format: text/html
Number: 67
Handle: RePEc:bis:bisblt:67