FEDERAL RESERVE BANK OF ST. LOUIS: Does the Money Supply Predict Inflation in the US? (Explained)

This episode breaks down a research paper from the Federal Reserve Bank of St. Louis, exploring whether different measures of the money supply are useful for forecasting US inflation. Using advanced non-linear techniques, the authors find limited support for monetary aggregates as reliable inflation predictors in the early to mid-2000s. Dive into the specifics of this intriguing macroeconomic study at https://fedinprint.org/item/fedlwp/10440/original and share your thoughts at [email protected]. This episode explains a real academic paper in plain English for a general audience. Source paper: FEDERAL RESERVE BANK OF ST. LOUIS Does Money Matter in Inflation Forecasting? - FEDERAL RESERVE BANK OF ST. LOUIS https://doi.org/10.20955/wp.2009.030 Keywords: inflation, money supply, forecasting, monetary policy, central banking, macroeconomics