The lag from money to prices

This note accepts Terry Seaks's critique of my earlier method of estimating the lag between monetary growth and inflation by using percent changes over time spans of three or four years. However, Seaks's critique does not impair the main findings of this early work, which have been confirmed by several recent studies that avoid the pitfalls emphasized by him. These findings are that monetary growth has been a major determinant of inflation in a large number of countries since the late 1950s, and that money typically influences prices with lags of a year and a half or more.