Money and Inflation in the Euro Area: A Case for Monetary Indicators?

By Stefan Gerlach, Lars E. O. Svensson. 2003

414 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/09c943dcb1dcce67c8a1efb66d1b63ee1f6db9ed

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Citations in the corpus

Money in an Estimated Business Cycle Model of the Euro Area (2006, neutral): “5 Gerlach and Svensson (2000) find that the real balances gap (i.e. the difference between the current level of real balances and its long-run equilibrium level) rather than the P* gap is the reliable leading indicator for future inflation in the euro area.”
Maintaining Low Inflation: Money, Interest Rates, and Policy Stance (2007, neutral): “…the price level, inducing a price level overshooting and oscillating inflation behavior, or the analyses focus on inflation deviations around an exogenously specified trend, like in Gerlach and Svensson (2003) where a downward inflation trend reflecting central banks assumed objective is modeled.”
The Lag from Monetary Policy Actions to Inflation: Friedman Revisited (2001, background): “Gerlach and Svensson (2001) report that the European Central Bank has documented an approximate 18-month lag between money growth and inflation in the euro area.”
The Econometrics of Macroeconomic Modelling (2005, methodology): “Gerlach and Svensson (2003a) have estimated a variant of the P*-model (8.”
The Future of Monetary Aggregates in Monetary Policy Analysis (2003, background): “Conversely, the evidence in Gerlach and Svensson (2002) that money terms do provide explanatory power for inflation over and above that contained in measured output gaps, suggests measurement error in the latter, as well as a positive correlation between money growth and the true output gap.”
Excess Money Growth and Inflation Dynamics (2008, background): “2 See for instance Lucas (1980), Lothian (1985), McCandless and Weber (1995), Jaeger (2003), Gerlach and Svensson (2003) and Benati (2006) among many others.”
Assessing excess liquidity in the euro area: the role of sectoral distribution of money (2011, background): “…overhang’, which represent money stock deviations from measures of equilibrium money balances and have been shown to have higher predictive power for future inflation than money growth at horizons between 1 and 3 years (Nicoletti Altimari, 2001; Trecroci and Vega, 2002; Gerlach and Svensson, 2003).”