As we all know, instability in the short-run relationship between money and inflation has resulted in much pressure to downgrade the role of monetary analysis in monetary policy deliberations at various central banks. I concede that the relative value of monetary analysis may well have declined with respect to analysis of short-term pressures on price stability.
At the same time, monetary aggregates, credit growth, asset prices etc. contain valuable information that remains relevant for assessing longer-term future inflation developments and, importantly, potential emerging threats for financial stability. BIS Review 58/2007  5  First, I would argue that "money matters" especially during conditions of possibly excessively compressed risk premia.