Money Growth and Inflation in the Euro Area: A Time‐Frequency View
使用小波分析研究欧元区过去40年货币增长与通胀的关系，发现长期中两者联系紧密，但商业周期频率上的联系在1980年代初后消失，且近期货币增长对通胀的领先性减弱。
Abstract This article provides new insights on the relationship between money growth and inflation in the euro area over the last 40 years. This highly relevant link for the European Central Bank monetary policy strategy is assessed using wavelet analysis. The findings indicate a stronger link between inflation and money growth at low frequencies over the whole sample period. At the typical business cycle frequency range the link is only present until the beginning of the 1980s. Moreover, there seems to be a recent deterioration of the leading properties of money growth with respect to inflation in the euro area.