Abstract
The long-run money–inflation relation is re-examined in the context of De Grauwe and Polan's (2005) recent claim that the monetary aggregates are of no use for monetary analysis at low rates of inflation, and Nelson's (2002) counterclaim that in cross-country analysis money should be defined as currency and allowance should be made for lags. I report cross-section results that support a role for the monetary aggregates at low inflation when currency is the monetary aggregate, and panel data results that find no such role, notwithstanding the use of currency and allowing for lags.
Published Version
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