6  See P Gerlach-Kristensen: A two-pillar Phillips curve for Switzerland, mimeo, 2006. 7  See O Issing: The role of macroeconomic projections within the monetary policy strategy of the ECB, Economic Modelling, Vol. 21, 2004, p 725.
2  BIS Review 39/2006  in practice it has to date proved difficult to capture statistically, in a sufficiently reliable way, the longerterm price effects of monetary policy on the basis of available macroeconometric models.” 8 In recent years, several papers have come to the conclusion that monetary and credit aggregates – or variables which rely heavily on money growth such as the so-called “money gap” – provide valuable information for future inflation in the euro area.