 Indicators of InflationRobert Rasche, Peter Nicholl and Takatoshi Ito Chapter 9 in Price Stabilization in the 1990s, 1993, pp 277-327 from Palgrave Macmillan Abstract: Abstract The purpose of this analysis is to review and analyse several indicators or information variables for inflation that have been proposed recently. The traditional and widely accepted perspective was that a monetary aggregate is an accurate indicator of the price level in the economy and that the growth rate of such an aggregate is an indicator of the sustainable rate of inflation. Careful statements of this position acknowledged that the indicator role of monetary aggregates and/or their rates of growth is appropriate for the analysis of long-run, equilibrium, or steady-states of an economy. From month to month, quarter to quarter, and even from year to year the size of a nominal monetary aggregate or its rate of growth should not be expected to precisely or even accurately track the price level or inflation, because the economic analysis that is the foundation of the monetary indicator proposition assumes away transitory fluctuations in real output and the velocity of the monetary aggregate. Keywords: Exchange Rate; Interest Rate; Monetary Policy; Price Level; Term Structure (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-12893-8_9 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-12893-8_9 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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