... parameter on M3 growth is positive and significant, and theparameter on the change in the exchange rate is negative and highlysignificant. Thus, faster money growth and a depreciation of the euroin ... 0.79 in the first case and 0.82 in the second case), and a somewhat lower correlation, 0.67,between the indicator and the output gap. The correlation betweensentiment and expected output growth ... termsbetween 1999 and late 2000, a period during which the repo rate wasrising, and that it appreciated between late 2000 and late 2004 asthe ECB’s repo rate was cut repeatedly and then held constant....