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Inflation forecasts based on money growth proved accurate in 2021, though generally unreliable


Abstract: As money demand changes, and in particular as money velocity fluctuates with interest rates, this relationship can become unstable with money growth providing limited useful information for inflation forecasting.

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File(s): File format is text/html https://www.dallasfed.org/research/economics/2024/0220
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Provider: Federal Reserve Bank of Dallas

Source: Dallas Fed Economics

Publication Date: 2024-02-20