Does cash progress assist clarify the latest inflation surge?

Claudio Borio, Boris Hofmann and Egon Zakrajšek in this BIS Bulletin article:

• The energy of the hyperlink between cash progress and inflation is determined by the inflation regime: it’s one-to-one when inflation is excessive and just about non-existent when it’s low.
• A hyperlink can be seen within the latest potential transition from a low- to a high-inflation regime. An upsurge in cash progress preceded the inflation flare-up, and nations with stronger cash progress noticed markedly larger inflation.
• cash progress would have helped to enhance post-pandemic inflation forecasts, suggesting that its info worth might have been uncared for.

Will financial aggregates make a comeback?

This entry was posted on January 30, 2023 at 9:35 pm and is filed below Academic research & research papers, Central Banks / Monetary Policy, Economics – macro, micro etc. You possibly can observe any responses to this entry via the RSS 2.0 feed.
You possibly can leave a response, or trackback from your personal website.