Short-term money-inflation link is weak -Bernanke

CAMBRIDGE, Massachusetts (Reuters) - Federal Reserve Chairman Ben Bernanke said on Tuesday monetary aggregates do not have a "special role" in the formulation of U.S. monetary policy because their short-term relationship with inflation was weak.

"Our experience has been that financial innovation and other factors have tended to create a relatively weak relationship in the short run between money and inflation and money and output," Bernanke said in answer to a question after delivering a speech on inflation at an event sponsored by the National Bureau of Economic Research.

Bernanke also said monetary policy was not a good tool to "pop" inflated asset prices.