The Link of the Monetary Indicator to Future Inflation in the Euro Area – A Simulation Experiment

Abstract

We examine the indicator property of the monetary indicator for inflation. Using a P*-model, Svensson shows theoretically in a recent paper that the relationship between these two variables is rather tenuous. The present study employs empirical evidence on the relations in his model to quantify its dynamics for the euro area. Moreover, we extend Svensson’s… (More)

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@inproceedings{Gottschalk2001TheLO, title={The Link of the Monetary Indicator to Future Inflation in the Euro Area – A Simulation Experiment}, author={Jan Gottschalk and St{\'e}phanie Marie Stolz and J{\"{o}rg D{\"{o}pke and Klaus-J{\"{u}rgen Gern and Robert Kokta}, year={2001} }