Adjusted Monetary Aggregates and UK Inflation Targeting

Posted: 29 Feb 2008

See all articles by Leigh M. Drake

Leigh M. Drake

affiliation not provided to SSRN

Adrian R. Fleissig

California State University, Fullerton - Department of Economics

Abstract

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.

JEL Classification: C14; C43; E51; E52

Suggested Citation

Drake, Leigh M. and Fleissig, Adrian R., Adjusted Monetary Aggregates and UK Inflation Targeting. Oxford Economic Papers, Vol. 58, Issue 4, pp. 681-705, 2006. Available at SSRN: https://ssrn.com/abstract=1097942 or http://dx.doi.org/10.1093/oep/gpl018

Leigh M. Drake (Contact Author)

affiliation not provided to SSRN

Adrian R. Fleissig

California State University, Fullerton - Department of Economics ( email )

Fullerton, CA 92834
United States

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