We assess the bivariate relation between money growth and inflation in the euro area and the United States using hybrid … statistically unstable across time in both regions. The effect that shocks to money growth has on inflation weakened notably after … monetary aggregates to inflation. …

components, and innovations to trend and gap inflation are affected by stochastic volatility. A novelty of our model is to allow …This paper studies the joint dynamics of U.S. inflation and a term structure of average inflation predictions taken … (UC) model of inflation and a sticky‐information forecast mechanism. The UC model decomposes inflation into trend and gap …