Money in the era of inflation targeting

Release date
01/07/2001
Reference
DP2001/02
Author
Weshah Razzak
Main file
This paper provides evidence that the relationship between inflation and money growth has changed as the inflation-targeting regime has progressed. During the disinflation period (mid 1980s to mid or late 1991) the correlation between inflation and money aggregates was fairly consistent with the prediction of theory. Both inflation and money growth fell sharply.