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Money in the era of inflation targeting

Weshah Razzak

Published date:

01 July 2001

Reference:

DP2001/02

JEL classification:

E41, C13, C22

Money in the era of inflation targeting

PDF | 255KB

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.