Structural Filters for Monetary Analysis: The Inflationary Movements of Money in the Euro Area

“…Since, many authors have used frequency domain techniques to examine the co-movement between money and inflation (e.g. Neumann and Greiber, 2004;Haug and Dewald, 2004;Gerlach 2003Gerlach , 2004Bruggeman et al, 2005;Assenmacher-Wesche andGerlach, 2006, 2007;Benati 2009, Rua, 2012, Jiang and al, 2015, Tastan and Sahin, 2020.…”

Section: -Literarure Reviewmentioning

confidence: 99%

Money supply and inflation in Algeria : a Wavelet Based Analysis

Chekouri,

Kahoui,

Chibi

2024

lcdc

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The purpose of this study is to examine the relationship between money supply and inflation in Algeria using wavelet analysis. In this study, we have applied Maxima Overlap Discrete Wavelet Transform (MODWT), Multiresolution Analysis (MRA), wavelet correlation, Wavelet Coherence, and wavelet-based Granger causality test to analyze the relationship between the two variables during the period from January 2010 to November 2019. Our findings show strong links between money supply and inflation in both the short and long run, which supports both the traditional and modern quantity theories of money. Additionally, the time scale Granger causality analysis indicates the existence of causality from money supply to inflation over different time horizons. The outcomes of the current study should be of interest to Algerian monetary policymakers as they decide to sustain growth using unconventional monetary policy.

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“…It implicitly assumes that the transmission mechanism of monetary policy has remained stable and that consumer prices reliably respond to changes in monetary policy. However, this assumption has been challenged by empirical evidence (Andersson, 2011;Bruggeman, Camba-Méndez, Fischer, & Sousa, 2005).…”

Section: Introductionmentioning

confidence: 99%

Alternative measures of price inflation and the perception of real income in Germany

Israel

Schnabl

2023

World Economy

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Since the 1980s inflationary pressures seem to materialise over‐proportionately outside sectors of consumer goods and services. We combine the Harmonised Index of Consumer Prices with indices for asset prices, such as stocks and real estate, as well as a proxy for the costs of public goods to develop alternative inflation measures in Germany since the introduction of the Euro. Real economic growth as well as median wage developments are reexamined in light of the alternative inflation estimates. Both turn out to be negative over the past decade in the most pessimistic scenarios.

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Structural Filters for Monetary Analysis: The Inflationary Movements of Money in the Euro Area

Cited by 14 publications

References 18 publications

China: Strengthening Monetary Policy Implementation

China: Strengthening Monetary Policy Implementation

Money supply and inflation in Algeria : a Wavelet Based Analysis

Alternative measures of price inflation and the perception of real income in Germany

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