BIS paper: money growth-inflation link weakens, credit link grows
Authors find credit growth is becoming more important
The link between money growth and inflation has been in steady decline in the post-war period, according to a working paper published by the Bank for International Settlements on June 1.
Pavel Gertler and Boris Hofmann point to an inverse relationship between the importance of money growth and credit growth in their paper, Monetary facts revisited.
Money growth is more significant for emerging markets than advanced economies, they say, while the opposite holds true of credit growth. They suggest
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