An Analysis of the Relationship Between Inflation and Economic Growth PDF Download

Author: Carroll Edward Dunn (Jr.)
Publisher:
ISBN:
Category :
Languages : en
Pages : 260

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Author:
Publisher:
ISBN: 9780949887856
Category :
Languages : en
Pages :

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Author: Martin Paldam
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 24

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Author: Raymond Cook
Publisher: GRIN Verlag
ISBN: 3656441731
Category : Business & Economics
Languages : en
Pages : 39

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Research Paper (postgraduate) from the year 2011 in the subject Economics - Finance, grade: A, University of Newcastle, language: English, abstract: During the past two decades, China’s economy has been growing rapidly, so has the inflation rate. This research focuses on the relationship between China’s inflation rate and economic growth. There are three sub-questions, consisting of whether there is a significant correlation between China’s inflation and economic growth, whether there is a cause-and-effect relationship between China’s inflation and economic growth, and how time factor influences their relationship. The result will be helpful for the government to find a way in order to achieve high economic growth and low inflation. After reviewing empirical literature, we know that as the dada and methods differ, different researchers have generated different conclusions regarding the relationship between inflation and economic growth. In this research, we use CPI to measure inflation rate and GDP growth rate to measure economic growth rate. All the data are collected from the National Bureau of Statistics of China. We use three methods to analyse data, including the Correlation Coefficient test, the Granger Causality test as well as the VAR model analysis. The result turns out to be that there is a bidirectional causality relationship between inflation and economy growth, but the relationship is not so strong because CPI is not solely driven by GDP. At last, we have come up with three recommendations: firstly, change their model of economic development; secondly, use the monetary policies; thirdly, monitor and predict people’s expectation of inflation.

Author: Satya Paul
Publisher:
ISBN: 9781875760039
Category : Inflation (Finance)
Languages : en
Pages : 25

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Author: Anna Miller
Publisher: GRIN Verlag
ISBN: 3656523223
Category : Business & Economics
Languages : en
Pages : 48

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Master's Thesis from the year 2013 in the subject Economics - Economic Cycle and Growth, grade: 64%, University of Nottingham, language: English, abstract: This paper examines the inflation-growth interaction for different country groups with similar national incomes for the period 1970-2011. It could be confirmed that this relation is strictly nonlinear with a threshold level of inflation of 3% for high-income countries and 13% for low-income countries. Although this result is in line with previous empirical studies based on a similar data set, much smaller samples needed to be used to obtain these results. Inflation threshold levels are estimated using the iteration method and different panel-specific techniques. Strongly significant thresholds were yielded only when controlling for country-fixed effects. Policymakers can use the findings for high-income or industrialised countries as a guide for inflation targeting, however more precise analyses for less advanced countries are needed in order to be useful for monetary policy.

Author: Deseke Kebede
Publisher: GRIN Verlag
ISBN: 3668582432
Category : Business & Economics
Languages : en
Pages : 69

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Research Paper (undergraduate) from the year 2017 in the subject Economics - Economic Cycle and Growth, grade: 1, , language: English, abstract: The purpose of the study is to examine the relationship between inflation and economic growth in Ethiopia over the period of 1991/92- 2014/15 by using data at quarter base. The study was employed Johansen method of co-integration and vector error correction model and a technique of conditional least square. The result shows that both in long-run and short-run the relationship between inflation and economic growth is positive. Despite to this, the granger causality test tells us bi- directional causation between these two variables. The result also revealed that threshold level of inflation beyond on which inflation negatively affects economic growth of Ethiopia is 5 percent. Therefore, co-ordination between macro- economic policy makers is vital and should have to raise their hands and put their eyes on measures that keep down inflation below 5 percent to have sustainable economic growth in the country.

Author: Stephanie Kremer
Publisher:
ISBN: 9783941240032
Category :
Languages : en
Pages : 36

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Author: Moges Endalamaw Yigermal
Publisher: GRIN Verlag
ISBN: 3668655979
Category : Business & Economics
Languages : en
Pages : 23

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Case Study from the year 2016 in the subject Economics - Monetary theory and policy, , language: English, abstract: Since the main objective of the paper is to test the existence of causality relationship between the three macroeconomic variables, namely real GDP, price level (CPI) and M2 money supply (MS), analysis has been made there by employing 40 years of data (data from 1975-2014). VAR Granger causality test has been made to verify the objective of the paper. The VAR Granger causality test result suggesting the existence of strong and significant correlation between the three variable s pairwise. The direction of causation is found to be a uni- directional causation between money supply and inflation, real GDP and Money supply and between real GDP and inflation and the causation runs from money supply to inflation, real GDP to Money supply and real GDP to inflation respectively. From the causation we observed that money supply has relationship with level of price and economic growth (real GDP). Basically targeting monetary expansion has a multiple role to boost economic growth and control the level of inflation.

Author: Antoine Niyungeko
Publisher: GRIN Verlag
ISBN: 3346294358
Category : Business & Economics
Languages : en
Pages : 23

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Scientific Study from the year 2020 in the subject Economics - Macro-economics, general, , language: English, abstract: The purpose of this study is to analyze the relationship between gross domestic product growth (GDPG) and inflation (INF), unemployment youth male (UNYM), and unemployment youth female (UNYF), to analyze the nature of elasticity, and to evaluate the threshold where GDPG changes. Time-series data covering 1970 -2018 were used to examine the impact of INF and UNYM, and UNYF on GDPG. To estimate the relationship between GDPG and INF and UNYM, and UNYF, regression analysis was performed. Rainbow test was used to test the linearity of the model, Breusch-Pagan test was used to test homoscedasticity, Box Ljung Test was used to test autocorrelation, Phillips-Perron Unit Root Test was used to test whether time series were stationary. Elasticity was applied to measure the degree of responsiveness of change in GDPG to changes in INF and UNYM, and UNYF levels. Data analysis was performed using R and JASP. Results revealed a statistically significant negative relationship between GDPG and INF, UNYM and UNYF. Moreover, the result showed that GDPG responded strongly towards change in inflation and unemployment youth. A threshold was found beyond which GDPG became negative while under the threshold, GDPG continued to grow. To increase economic growth, Burundi should reduce inflation and unemployment youth under the threshold. Burundi should also focus on reducing female unemployment rate as it has great impact on economic growth. Burundi should stimulate entrepreneurship as it contributes in new job creation.