Adjusted Monetary Aggregates and UK Inflation Targeting

Adjusted Monetary Aggregates and UK Inflation Targeting

This study shows how to construct monetary aggregates using a procedure to adjust the simple-sum, Divisia and empirical monetary aggregates to be consistent with weak separability. The corresponding adjusted monetary aggregates have considerable leading indicator information and provide the most acc...

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Veröffentlicht in:Oxford economic papers 2006-10, Vol.58 (4), p.681-705
Hauptverfasser: Drake, Leigh, Fleissig, Adrian R.
Format: Artikel
Sprache:eng
Schlagworte:
Aggregate income
Aggregate price indices
Aggregates
Bank of England
Central banks
Consumption
Economic forecasts
Economic models
Economic policy
Empirical tests
Income estimates
Inflation
Inflation rate
Inflation rates
Inflation targeting
Leading indicators
Monetary aggregates
Monetary economics
Monetary liabilities
Monetary policy
Phillips curve
Statistical forecasts
Studies
United Kingdom
Utility functions
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Beschreibung
Zusammenfassung:This study shows how to construct monetary aggregates using a procedure to adjust the simple-sum, Divisia and empirical monetary aggregates to be consistent with weak separability. The corresponding adjusted monetary aggregates have considerable leading indicator information and provide the most accurate predictions of inflation over the Bank of England's two year forecast horizon.
ISSN:0030-7653
1464-3812
DOI:10.1093/oep/gpl018