Framework

This series of Framework papers presents the analytical foundations of the International Monetary Monitor. The papers outline a monetary theory of the business cycle in which sustained changes in broad money growth drive movements in asset prices, nominal spending, output, and inflation, with long and variable lags. One important feature to note is that it is changes in the growth of broad money that drive the cycle, not changes in interest rates. The articles are intended as reference material, providing a consistent framework for analysing monetary policy, financial conditions, and macroeconomic outcomes across different economies and time periods.