Article ID Journal Published Year Pages File Type
968913 Journal of Policy Modeling 2006 12 Pages PDF
Abstract
Analysing the role of money for Swedish inflation, we apply a single equation “P-Star” model and a structural VECM for the period of the late 1980s to the beginning of 2005. Against the background of theoretical and empirical considerations, we find that money - when measured by the “price gap” or, alternatively, the “money overhang” - had a statistically significant impact on future price movements. The results suggest that money might have to play a more prominent role in monetary policy making in Sweden compared with the status quo.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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