Money Growth, Inflation and the Business Cycle

Authors Risbjerg, Lars
Subject Monetary- and foreign-exchange policy
Type Monetary Review  
Year 2006
Published 9 October 2006
Money growth has recently been relatively strong both in Denmark and abroad. The article investigates whether money growth in Denmark is higher than the current economic conditions and interest rates would normally warrant. Furthermore, the correlation between money growth and inflation in the short and long term is examined, as well as the correlation between money, credit and housing prices over the business cycle.