This Paper examines inflation indicators for the euro area by studying the relationship between inflation, output … information regarding future inflation. In contrast, the Eurosystem’s money-growth indicator (the difference between nominal money … future inflation, and no information beyond that contained in the output and real money gaps. The predictive performance of …

quantitative indicators of the Governing Council’s assessment of inflation, economic activity, and M3 growth, and investigate their … indicators as measures of the state of the real economy. Furthermore, I find statistically significant reactions to inflation and …

This paper studies the relationship between inflation, output, money and interest rates in the euro area, using data … power for future inflation. The real money gap contains more information about future inflation than the output gap and the … Eurosystem's money-growth indicator is an inferior indicator of future inflation. …

economy, M3 growth, and exchange rate changes but not to inflation. We develop quantitative indicators of the Governing … to inflation shocks because they were seen as temporary. By contrast, policy responses to economic activity are strong … because it impacts on the outlook for inflation. …