A Modified P*-Model of Inflation Based on M1.

This paper examines the performance of M1 in an indicator model of inflation over time horizons as long as 16 quarters into the future. The central conclusion of the paper is that, in addtion to the output gap, the cumulative growth of M1 and the deviations of M1 from its long-run path provide "distant-early-warning" information about the future path of inflation.

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Year of publication:	1996
Authors:	Atta-Mensah, J
Institutions:	Bank of Canada
Subject:	ECONOMIC MODELS \| INFLATION

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	24 pages
Classification:	E31 - Price Level; Inflation; Deflation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005536886